Influencing Factors of Investment for Companies

Yushan Kang; Jian Xing; Shanhui Zhao

doi:10.2991/aebmr.k.220307.279

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Influencing Factors of Investment for Companies

Authors

Yushan Kang¹^{, *}^{, †}, Jian Xing²^{, †}, Shanhui Zhao³^{, †}

¹School of Business and Management, Durham University, Durham, DH1 3HN, UK

²School of Economics and Finance, Xi’an Jiaotong-Liverpool University, Suzhou, Jiangsu, 215028, China

³School of Economics and Management, Tianshi University, Tianjin,301738, China

^†

These authors contributed equally.

^*Corresponding author. Email: wjpt25@durham.ac.uk

Corresponding Author

Yushan Kang

Available Online 26 March 2022.

DOI: 10.2991/aebmr.k.220307.279 How to use a DOI?
Keywords: Investment; Government; Environment; Behavior; Performance; Risk
Abstract: Companies always try to make the best investment decision to maximize profits. This article summarized the latest research progress in corporate investment. External and internal factors that influence enterprise investment decisions were analyzed. External factors include government policy and environmental factors. Government policies such as macroeconomic policies and globalization policies will affect enterprises’ stock return rate and thus influence their investment decision. Furthermore, environment factors such as the development of science and technology, culture, society and COVID-19 will also have impacts on investment decisions. Internal factors include behavioral factors, company’s performance and the risk in investment decisions. Influenced by behavioral factors such as disposition effect, mental accounting and diversification heuristic bias, enterprises have a tendency to reduce investment in projects. However, overconfidence will encourage the investment department of the company to invest. The relationship between corporation’s current performance, historical performance and social performance will change the allocation of resources within the company and thus affect the enterprise investment. Also, attitudes to risk and uncertainty of the company are main issues that company should consider when they make investment decisions. In order to make a better investment decision, companies need to recognize different variables from the costs to the profits of an investment project.
Open Access: This is an open access article under the CC BY-NC license.

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Volume Title: Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)
Series: Advances in Economics, Business and Management Research
Publication Date: 26 March 2022
ISBN: 978-94-6239-554-1
ISSN: 2352-5428
DOI: 10.2991/aebmr.k.220307.279 How to use a DOI?
Open Access: This is an open access article under the CC BY-NC license.

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ris enw bib

TY  - CONF
AU  - Yushan Kang
AU  - Jian Xing
AU  - Shanhui Zhao
PY  - 2022
DA  - 2022/03/26
TI  - Influencing Factors of Investment for Companies
BT  - Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)
PB  - Atlantis Press
SP  - 1714
EP  - 1718
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220307.279
DO  - 10.2991/aebmr.k.220307.279
ID  - Kang2022
ER  -

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