An Empirical Study On The Relationship Between Manger Overconfidence And Debt Maturity Structure

Corporate financing behavior has always been one of the hot issue of financial theories field. Based on the hypothesis of the rational decision, traditional finance theory makes on the corporate financing strategy selection of theoritical study and empirical tests. Based on company of behavioral finance theory development, scholars realize that irrational managers impact on corporate financing decision. This paper is based on the point of the irrational managers, discard the traditional theory of rational managers hypothesis, trying to research listed companies on Chinese managers overconfidence behavior whether and how to affect the company’s debt maturity structure。the financing structure of the paper is mainly debt financing structure。In the above background, this paper firstly summarizes the managers’ overconfidence reason, the financing way and the managers’overconfidence alternative indicator. Secondly, in view of China’s specific conditions, analysis our listed company’s financing environment and financing activities, Third, throngh building the multiple regression model, empirical analysis the managers’ overconfidence tend to choose financing debt or equity financing, analysis the managers’overconfidence how to affect commercial credit financing; Also studies the overconfidence managers in the debt financing in favour of short-term loan or long-term loan. The empirical results show that managers’ overconfidence and asset-liability ratio are significantly negative correlation and the commercial credit financing are negative correlation and the debt maturity structure are significantly positive.To measure managers’ overconfidence, this paper refers to the point view of Liu, Hu and Chen (2005). So this paper adopts the performance prediction deviation to measure managers’ overconfidence.The paper draw the conclusion:the managers’ overconfidence affect the company financing structure, overconfidence managers overestimate their own company’s ability to create cash flow, so they are not willing to undertake liabilities financing, so as to the credit financing, When the company needs to external financing, managers’overconfidence tend to choose the short-term debt financing. Through the study, this paper enriches and expands the company behavior financial theory. At the same time, the paper analyzes the listed companies in China under the background of specific financing environment and financing characteristics, research overconfidence’managers affect the company debt maturity structure, so the study of the paper has a strong practical significance.