Research Of The Relationship Between Managerial Confidence And Debt Financing

Financing decision is an important economic decision of enterprises. And it is also the foundation of other business decision. The traditional theory of capital structure analysis the enterprise financing decision is based on hypothesis of manager is "rational man". Behavioral finance break the normal procedure, and denied the managers of the hypothesis of "rational man", and put forward a point of view of the managers is "limited rationality", provide a new angle of view of the research of corporate finance behavior. In this paper, we will study the financing behavior of the enterprises.In this paper, we select the sample data of2007to2012of Chinese manufacturing industry listing Corporation. And establish the empirical model, analyzes the factor that confident managers is "limited rationality" for our country manufacturing industry listing Corporation financing decision. We come to the conclusion that. In the manufacturing industry listing Corporation, confident managers are more inclined to debt financing in external financing, which showed high rates of assets and liabilities. Confident managers are more inclined to debt financing in debt maturity choices, thus showing a higher short-term debt ratio. Confident managers are more inclined to choose financial liabilities in the type of debt financing, which exhibited higher financial liabilities accounted for financing.Thus it can be seen that the manager’s confidence is the important influence factor of financing decision of enterprises. By empirical analysis, this paper put forward some suggestions to reduce the managerial confidence influence on enterprise’s financing behavior. And urge the manager to reduce the incidence of confidence and radical type of debt financing behavior.