Managerial Overconfidence,Debt Financing And Corporate Value

Past scholars around the traditional financial theory "rational economic man" to carry out research on managers.However,with the abnormal phenomenon of the capital market,the traditional "rational economic man" can not make a reasonable explanation.This allows the scholars to relax the rational economic man's hypothesis,resulting in behavioral finance.Different from the traditional financial theory,the manager's mental state is taken into account.The research shows that managers tend to show excessive self-confidence,anchoring effect,herding effect and frame dependence in making decisions on enterprises.Among them,scholars found that excessive self-confidence in the performance of managers who are the most solid and significant.Managers overconfidence more and more become the focus of academic attention.This paper studies the impact of managers' overconfidence on debt financing and corporate value from the perspective of behavioral finance.Based on the study of Chinese A-share listed companies from 2012 to 2016,this paper adopts the empirical research methods such as descriptive statistics,correlation analysis and regression analysis,as well as the case of "YanZhou Coal Mining Company Limited" the company.Debt financing as an intermediary variable,examining the relationship between managers overconfidence and corporate value.In this paper,the relative compensation of managers as managers overconfident variables,taking the asset liability ratio as a substitute variable for debt financing,taking the Tobin Q as an alternative to Corporate Value.This paper draws the following conclusions:(1)There is a negative correlation between manager's overconfidence and corporate value(2)Manager's overconfidence is positively correlated with debt financing(3)Overconfident managers tend to short-term debt financing(4)Debt financing and corporate value were negatively correlated(5)Debt financing is the manager of excessive self-confidence and corporate value of the intermediary variable(6)Compared with non-state-owned listed companies,state-owned listed companies have more self-confidence and stronger correlation with enterprises(7)If the manager and chairman of the board of directors of a pair of business performance play a regulatory role,it will increase the managers of excessive self-confidence,the two posts will inhibit the managers of excessive self-confidence,the impact of corporate performance weakened.These studies have enriched the relevant literature of managers' overconfidence,which has certain significance for enterprises to create good internal control and perfect management mechanism.