A Study on the Relationship between Manager''''s Private Benefits and Over-investment
经理私人利益与过度投资

It is difficult that investment level is optimal because of principal-agency. The paper discusses the relationship between manager's private benefits and investment behavior. By developing model, we find that manager's private benefits is the determinant of over-investment, and manager's payoff only affects the level of his efforts. Moreover, manager will be punished if share-holder find over-investment occurs. We believes that sound debts, perfect monitoring and the acknowledge of property right of human being's capital are the solution to over-investment.