Executive Overconfidence Influence On Financing Preference And Investment

With the development of behavioral finance theory, the influence of managerial overconfidence on the corporate investment and financing has become an important topic for researchers at home and abroad.Our research in this area is mainly based on foreign theories, as well as the preliminary study of the Chinese main board of listing corporation.The research scope is relatively simple,and the study find that the influence of managerial overconfidence on investment is not a single manager personality characteristics.Because of the management group behavior characteristics shown in making the investment decision.Therefore, in order to widen the scope of the study of behavioral finance theory in Chinese capital market,In this paper, the management group are as the object of study to explore the small and medium listed company executives group overconfidence condition and the influence of managers overconfidence for enterprises financing.The paper adopt the method of combining theoretical analysis and empirical analysis to study the effect of managerial overconfidence on the investment and financing in the small and medium-sized enterprise.The full text is divided into six parts.The first part is introduction, mainly introduce the research purpose and significance and the research content and frame.The second part is literature review, mainly to define the main concepts in this thesis, and introduce the basic theory research,including measurement methods and research status of corporate investment and financing problems.The third part is research review of overconfidence investment and financing,the research of the theory at home and abroad are summarized and provide a solid theoretical basis for this study.The fourth part is the construction of theoretical analysis and model,based on the previous theory.The thesis puts forward the hypothesis and construct of the model.The fifth part is the empirical analysis.This is the core of this paper,through the use of descriptive statistical analysis, correlation analysis, regression analysis to achieve continuous and stable result to verify the hypothesis proposed in this paper.The sixth part is the summary and outlook,through the conclusion of the study, introduce the research implications and policy suggestions, and explain the limitations of this study.The main innovation of this paper is management group as the object of study,through the study of small and medium-sized enterprises, expanding the scope of the study of behavioral finance theory in Chinese capital market.To provide a new perspective for research on financing of small and medium-sized enterprises.The study found:(1) In the small and medium-sized companies, the colony of managers exist overconfidence phenomenon.(2) In the small and medium-sized companies, managerial overconfidence will increase investment.(3) Investment and external financing cash flow have sensitivity in the overconfidence company,while the investment and free cash flow have not sensitivity,the conclusion is different from domestic and foreign scholars study.(4) Investment and external financing cash flow have more sensitivity in the overconfidence company than in the moderate confidence company.