Management Overconfidence And Corporate Debt Financing Empirical

Interdisciplinary research has appeared in large numbers in the field of economics recently.In the study of economics, scholars has widely used sociology, Related study found thatcorporate managers in economic decision-making often exhibit deviations from the optimaldecision psychological characteristics, Such as: herd mentality, herding, overconfidence, etc.These psychological characteristics affect financial decision-making behavior of managers. Thisarticle abandoned the traditional economics "rational man" hypothesis, tried to study of theimpact of managerial overconfidence on corporate debt financing, and on the basic of theresearch, proposed policy recommendations, provide useful lessons for better understanding ofthe behavior of corporate financial decisions, improve corporate financial decision-makingmechanism and corporate governance mechanisms.In this paper, all A-share listed companies selected in2010-2012,disclosed the earnings inthe third quarter as the studied sample. On the basis of the relevant research to sort, two basicassumptions has been made in this article, we select the measure of overconfidence, considerother factors that may affect the business of financing, establish two empirical model, and themodels has passed empirical regression test. The empirical results show that: managerialoverconfidence and asset-liability ratio of enterprises in the1%significance level werepositively correlated, and overconfident managers and short-term debt maturity structure werepositively correlated, but the relationship was not significant. Therefore, we believe thatmanagers excessive optimism is an important factor affecting our capital structure and financingpolicies listed.By the conclusion of this article, we propose the following points recommendations:1.Establish a more convincing measure of managerial overconfidence integrated system.2.Establish a more effective manager incentives and scientific decision-making mechanism.3.Strengthen the supervision of outside independent directors, to further improve the corporategovernance mechanism.