Empirical Study On The Relationship Between Enterprise Expansion And Managerial Overconfidence In The Real Estate Industry

This paper is based on behavioral finance theory,adopting 2010-2014 listed real estate corporates financial data which from their annual report,and do empirical studies to discuss the relationship between enterprise expansion and managerial overconfidence.This paper used composite indicators to define managerial overconfidence,including corporate property,manager education,manager gender,the duality of CEO and Board Officer.By empirical studies,the result was that,managerial overconfidence is significant positive correlated to enterprise expansion.For further study,the whole samples are divided into three groups as different enterprise scales,the result indicating that enterprise profit capability has more significantly effect on large-scale enterprise while managerial overconfidence revealed more significantly effect on small and medium-sized enterprises.