This introduction presents an overview of the key concepts discussed in the subsequent chapters of this book. The book investigates the institutional background, practice and academic research of investment in China and argues that investment practice in Chinese enterprises currently is characterized by rapid growth of enterprise investment and a low-return on investment. It focuses on related literature on the effect of irrational market on corporate finance in China, as well as the studies on managerial biases and the relevant effectiveness. The book discusses in details the development of Chinese Accounting Standards (CAS), the current situation of CAS, the Basic Standard, the differences between current CAS and International Financial Reporting Standards (IFRS), and the future of CAS. It also investigates the relationship between corporate strategy and cost stickiness under different managerial expectations. The book introduces audit reports, opinions, audit fees and the regulatory environment in China.