Based on individual irrational behavior of inmvesment, the foucus of previos research is on the disposition effect of investment. This paper argues that firms are combinations of individuals, and whether the irrational behavior exists in the capital investment decisions of firms. This paper emphasizes on the verification whether certain effect and reflection effect of prospect theory exist in the investing behaviors of companies. By using regression models with data from Taiwanese listed companies between 2001 and 2006, the dependent variable is the ratio of capital investment and the independent variable is the previous operating performance. The evidences show that the certain effect exists in the subsample of better previous operating performance, i.e., the ratio of capital investment is negatively associated with previous operating performance. On the other hand, the existence of reflection effect is not supported in the subsample of worse previous operating performance, i.e., the ratio of capital investment is positively associated with previous operating performance. The irrationally risk-seeking behavior of stock market investors when facing loss is not observed in the capital investment decisions.