Corporate Financial Management Based On The Analyses of Behavioral Finance

Abstract

The modern Corporate finance theories based on the corporate pricing under the assumption of EMH, are developing from the rational analysis structure of the modern financial theories. But so far the modern financial theories have always ignored the research of people's psychological activities and behavioral modes, causing the great departure between theory and practice. This essay gives a new way to understand the investing and financing management in the newly hos scope of behavioral finance, giving the new analy-zing methods, such as Participatory Model of Management and Optional Assess of Management.