Comparative Study Of Managers Overconfidence Affecting M & G Decision Between State-owned And Private Listed Companies

Mergers and acquisitions is an important way for corporate resource allocation, is an important way for enterprise development. There are a lot of papers on M&A, mainly focused on motivation and performance.The theory is based on traditional rational market hypothesis. With the development of modern behavioral finance, overconfidence theory was put forward, the theory is verified from the experimental point of view of people's psychological tendency to overconfidence. Apply the theory to the research of acquisition, mainly for the relationship between managers of overconfidence and M&A decision. This article is based on the unique characteristics of China's capital market, separate the whole samples into state and private and have a empirical test. Comparative analysis of management overconfidence on the impact ofM&A decision-making behavior, from the perspective of non-rational motivation to explore mergers and acquisitions. As Chinese economic developing rapidly, and mergers and acquisitions activity rise in the current period, the introduction of management overconfidence theory with M&A have a more practical significance. In the empirical part, the article first carried out descriptive statistics of variables and independent sample mean T-test. Verified whether managers overconfidence is different among the state-owned enterprises and private business. Then taking the correlation and regression analysis. The results show that managers overconfidence was significantly positively correlated with M&A decision-making among the state-owned enterprises and private enterprises. Between Managers of private enterprises and state-owned enterprises there were differences in the impact of overconfidence on mergers and acquisitions. In addition, the relation among the investment opportunities, firm size, return on net assets and M&A decision was also significantly related.Finally, the article raised conclusions and recommendations, and also raised the prospect follow-up research.