Study On The Irrational Behavior Of Managers Based On MBTI Personality Types

To determine whether a company can achieve long-term sustainable development,management's rational behavior is an important factor.As a special group,business managers directly influence the formulation of various business decisions of companies.Managers not only have to be responsible for their actions,but also be responsible for the investors.Their personal qualities,especially their personality types,determine their risk preferences and behavior choices,which directly affect the operations and development of their companies.For managers,only if they can think rationally and make rational decisions will the company be able to develop steadily for a long period of time,and corporate investors will gain sustainable returns.However,it is regrettable that most managers themselves have some irrational factors such as overconfidence,optimism,and psychological accounts,leading them to make erroneous decisions,resulting in a loss of the companies.Based on this background,this study aims to explore the irrational behavior of managers.At present,research on irrational behavior in the financial field has yielded rich results.However,the focal point of this research is mainly on ordinary individual investors.There is a lack of in-depth research on irrational behavior of managers.In addition,the majority of existing scholars mainly focus on the impact of certain irrational behaviors such as the influence of overconfidence on corporate economic decision-making made by managers.Only a few scholars have considered the irrational behavior of managers comprehensively,but those scholars only treat the irrational behaviors as certain factors to implecate research.The study of the factors does not discuss the internal influence mechanism of the irrational behavior of managers,and no scholars have specifically studied the relationship between the MBTI personality type and the irrational behaviors of managers.There is also a lack of the consideration of emotional intelligence in psychology,generational differences in sociology,and strata of native families simutaneously to do study in a certain theoretical frame.In order to make up for these deficiencies,this study attempts to use MBTI personality types,emotional intelligence,intergenerational differences,and strata of original families to exploring the influence mechanism of irrational behaviors of managers.This research is based on behavioral finance theory,MBTI personality type theory,emotional intelligence theory,intergenerational theory,and social class theory.It takes 532 corporate managers as the research object,and uses STATA12 to conduct multi-layer regression analysis to systematically explore the influence of MBTI personality type on irrational behavior,and the moderating role of emotional intelligence,intergenerational differences,and strata of original families.The main research processes and conclusions are as follows:First,this study confirms that the four kinds of irrational behaviors such as overconfidence and herding exist in the groups of managers.There are three typical MBTI personality types,namely,ESTJ,ISTJ,and INTJ.Different MBTI personality types of managers have different manifestations in the four kinds of irrational behaviors which are overconfidence and herd effects.Among them,ESTJ and INTJ have a positive impact on overconfidence.ISTJ has a negative effect on overconfidence.For the effect of disposal effect,ESTJ and INTJ have a positive effect,ISTJ has a negative effect;for the impact on mental accounts,ESTJ and INTJ have a positive impact,ISTJ has a negative impact.In terms of herd effects,ESTJ and INTJ have a negative effect,and ISTJ has a positive effect.Second,emotional intelligence plays a negative regulatory role in the relationship between MBTI personality types and managers' irrational behavior.Among them,both ESTJ and INTJ have a tendency to carry a clear risk appetite.Both of the two MBTI personality types contain high emotional intelligence which can better control managers' own emotions.Compared with these two types of personalities,managers with low scores of emotional intelligences show a higher rational thinking in decision-making and a reduction of the occurrence of irrational behavior.ISTJ has a higher awareness of risk aversion,so this type of managers shows more herding effects than other types of managers.Higher emotional intelligence can also help ISTJ type managers to reduce the occurrence of herding effect.Third,intergenerational differences moderate the relationship between MBTI personality types and the irrational behaviors of managers.Compared with the generation of cultural revolution,the new generation of managers show more irrational behavior.Among them,ESTJ and INTJ have a strong sense of risk appetite.Both these two types of managers belonging to the new generation,show relatively more overconfidence and fewer herding effects than those who belong to the cultural revolution generation.For the 11 th kind of ISTJ,it has a strong sense of risk aversion.If this type of managers belonging to the new generation,it is relatively to have more overconfidence,disposition effects,mental accounts,and less herding tendencies.Fourth,the social class of the native family plays a moderating role in the relationship between the MBTI personality type and the irrational behavior of managers.Both ESTJ and INTJ have tendency to have a clear risk appetite.In these two types,managers who come from higher strata original families perform higher degree of overconfidence and less herding tendencies.Managers from lower strata original families,on the other hand,perform relatively little tendency to overconfidence and more herding effects in actual work.For ISTJ which has a higher risk aversion awareness,managers who were born on higher strata original families perform relatively more overconfidence and fewer herding effect.The innovation of this research mainly lies in the theoretical foundation of psychology,sociology,behavioral finance and other disciplines.It systematically analyzes two kinds of irrational behaviors related to managers,starting from the threshold of types of MBTI personality of managers,taking emotional intelligence,intergenerational differences,and socio-economic status of the original families as the moderating variables,integates behavioral finance theory,and from a deeper perspective,constructs the internal impact model of irrational behavior of Chinese corporate managers,and promotes enterprise management.The study of the internal influence mechanism of irrational behaviors enriches the research content of the theory related to the irrational behaviors of corporate managers.At the same time,the relevant research results of this study are conducive to the integration of psychological factors such as personality and emotions,as well as relevant research findings on early social experiences and irrational behaviors of corporate managers.This will promote the further study of psychology and sociology into the field of behavioral finance.In addition,research on behavioral finance,psychology,and sociology can be improved.It can also help companies and regulatory agencies understand the mechanisms between the internal factors and behavior choices of managers,formulate effective regulatory policies,and promote market conditions in the further development.