Managers Confidence In The Research On The Financing Behavior Of Listed Companies

As an important part of the organizational theory of modern enterprises, financingbehavior has always been the hot research issue among scholars at home and abroad. In spite ofgreat achievements, all these studies are almost based on the hypothesis, under the marketefficiency, that agents have "perfect rationality". In fact, a number of psychological andeconomic researches have indicated that the market participants show the common irrationalcharacteristics such as overconfidence. Facing the financial crisis comprehensive outbreaks, asthe company's main decision makers, while they weigh the risks and benefits, how theconfidence level performance, and under this psychological how the decision was made willbe worth to be further explored. Hence, based on the perspective of behavioral finance, thispaper will analyze the possible effects that the level of managerial confidence makes on thefinancing behavior of listed companies.Based on reviewing the basis of previous literature, through the analysis and comparison,finally choose continuous variable——the company profit forecast errors rate to measure thedegree of managerial confidence. This research chose the a share listed companies in Shanghaiand Shenzhen stock markets as the original data sample. During2008-2009, they made theyear's profit forecast in the3rdquarter and accurately reported the percentage change for theirforecasted profits. Because of the financing decisions of hysteresis, managers thatpsychological factors are necessary for next year's financing activities, this research choose thefinancing behavior of the listed company during2008-2009as the research object. Taking intoconsideration other possible factors which might affect financing behavior, the researchconstructed the model and made the empirical analysis. The results indicated that：firstly, thelevel of managerial confidence was not significantly associated with financing scale and style,for this problem, this paper also puts forward a more reasonable explanation, that is under thebackground of a full-blown financial crisis, the level of managerial confidence was notsignificantly associated with financing scale and style relative to other, so this kind of resultwill be appear even some factors were be considered; secondly,the level of managerialconfidence was significantly positively correlated with the debt-asset ratio. Therefore, thepaper made such conclusions: the level of managerial confidence is an important factorinfluencing the financing behavior of companies; thirdly,there is a significant positivecorrelation between the level of managerial confidence and the debt maturity structure, that is,the more confident managers are, the better they like short-term borrowing.This paper enriches research findings in fields related to the behavioral finance theory, andhas certain theoretical and practical significance. By theoretical analysis and empirical study, the research concluded: the level of managerial confidence is an important factor whichinfluences a firm's financing behavior, and the more confident managers are, the more likelythey show radical behavior in bearing debts.