Study On Managers Irrational Affecting Corporate Capital Structure

The traditional corporate finance theory cannot explain the company financial anomalies，which promoted the development of behavioral corporate finance theory，academia have begun tofocus on company managersand market investors irrational effects on corporate financial decisions.The paper based on the company capital structure as the core, and take managerial overconfidenceand risk appetite as the entry points, on the basis of reviewing and summarizing the existingresearch results, analyze the mechanism of manager irrational affect capital structure; Usingrelevant data of A-share listed companies from2007to2011, and empirically check the influenceof managers irrational on capital structure, also compares and analyzes managers irrationaldiscrepancyand its differenceeffect on capital structure under thestate-owned and privatesamples,getthefollowingmain conclusions:Firstly, managerial overconfidence and the proportion of debt financing is correlatedpositively,that is to say the more managers overconfidence,the more easier to increase debtfinancing，andit has a greaterinfluenceon thecredit financing.Secondly, managers of risk aversion is significantly negative correlation with debt financing,namely that with the increase of the degree of risk aversion, managers will gradually reduce thedebtfinancing.Thirdly, when managers overconfidence and risk aversion are interaction existing, the impacton the debt financing is negative, although managers are performanced as overconfidence, but theaversion ofrisk willreduceitsdebtfinancing.Fourthly, there is difference between state-owned and private listed company managersirrational extent, it leads to its impact on corporate capital structure also varies. State-owned listedcompanies managers overconfidence degree is higher than the private listed companies, are morelikely to increase debt financing; In risk appetite, more risk averse of private listed companymanagerstend toreducetheuseofdebt.