Research On The Financial Background Of CEO And The Financing Behavior Of The Listed Companies

Upper echelons theory and a number of empirical research results show that the manager's professional knowledge and background experience play an important role in supporting the decision-making behavior of the enterprise.In this paper,based on the influence of manager idiosyncratic on enterprise decision making,this paper studies the influence of CEO financial background on the financing behavior of listed companies based on the CEO change event of listed companies in China,and probes into the difference between the effects of choice and financing constraints of CEO financial background in enterprises with different property rights,different financing constraints and different growth levels.The research finds that:(1)As a whole,the listed companies with the financial background of CEO are more inclined to finance directly when they choose the finance mode.Increasing the bond financing and equity financing scale,and making the combination of financing ways are more flexible and diversified,which reduce the loan to the bank to a certain extent.(2)CEO who has financial background,capital operation,their financial management abilities are more easily stimulated and displayed in non-state-owned enterprises and enterprises with high financing constraints.This can significantly increase the scale of corporate bond financing and equity financing,and raise the flexibility and diversity of the combination of financing methods.In state-owned enterprises and enterprises with low financing constraints,the influence of the CEO with financial background on the choice of financing mode is limited,only to increase the loan of the enterprise bank.(3)The CEO with financial background can effectively alleviate the financing constraints of enterprises,and this mitigation's effect is more obvious in non-state-owned enterprises and high growth enterprises but it is not obvious in state-owned enterprises and low growth enterprises.(4)The CEO with financial background can capture investment opportunities in time and improve enterprise investment efficiency.The ability to capture investment opportunities as more fully reflected in non-state-owned enterprises and high growth enterprises.It is less obvious in state-owned enterprises and low growth enterprises.This study provides empirical evidence for the companies to choose CEO background according to their own financing needs,property rights,financing constraints,and corporate growth.