An Empirical Study On The Relationship Between Managerial Overconfidence And Firm Values

Since the MM theory was proposed in 1950 s Modigliani,a variety of financial theory such as emerge in an endless stream,Berle(1932)put forward the theory of corporate governance,Krause(1973)proposed the trade-off theory,Jensen(1976)put forward the agency cost theory,asymmetric information theory Ross(1977),Aghion(1992)of the corporate control theory.In recent years,the "irrational" behavior of managers has gradually become the focus of research.Baker believes that managers overconfidence is that a considerable number of people in the management will be self centered,overestimate their knowledge,access to information and other capabilities,self-confidence that can be successful.A large number of studies have shown that the board of directors will affect the company's overall operating performance.Vance(1968)found that the proportion of independent directors and corporate performance is inversely proportional to the proportion of internal directors and corporate performance is proportional to.Through to the domestic and foreign scholars about the managerial overconfidence,corporate performance and board of directors to collate and summarize relevant literature governance structure,few scholars have found the governance of the board of directors as managerial overconfidence and corporate performance of the "bridge",established as a starting point,the governance of the board of directors to research into the factors.To enrich the domestic research on the influence of Managerial Overconfidence on corporate performance results.On the basis of previous studies,select the measurement index,collect the effective data of listed companies,and make descriptive analysis,correlation analysis and regression analysis.Through empirical analysis results: there was significantly positive correlation between Managerial Overconfidence and corporate performance;the greater the proportion of independent directors,the positive relationship between Managerial Overconfidence and corporate performance is weak;the board of directors more diligent,positive relationship between Managerial Overconfidence and corporate performance is weak.Put forward the policy suggestions according to the research results: in corporate hiring managers should pay attention to the study of the psychological characteristics;control of the board of directors of the enterprise scale control;the proportion of independent directors;increase the prior board meetings,the meeting of the board of directors is really play a supervisory role.It is hoped that these suggestions will be useful for practical work.