Research On The Relationship Between Manager's Overconfidence, Debt Maturity Structure And Overinvestment

Investment as one of the most important financial activities,plays a crucial role in maximizing the value of the enterprise.At present,due to the unreasonable utilization of resources,the listed companies have the low investment efficiency and waste the resources.Previous research on investment was based on the assumption of "rational economic man",with the development of the economics and psychology,the explanatory power is declining.Based on the behavioral finance theory,this article analyses the influence of managers' overconfidence on over-investment and puts the intermediary variable of debt maturity structure to provide a new perspective for the three relations.First of all,this paper sorts out the domestic and foreign research literature.It finds that the current research literature is all about the relationship between managers' overconfidence and over-investment,the relationship between debt maturity structure and over-investment,the relationship between managers' overconfidence and debt maturity structure.However,the results are not consistent and there is a lack of research on the relationship between the three.Secondly,based on the behavioral finance theory and debt maturity structure theory,this paper analyses the influence of managers' overconfidence and debt maturity structure on over-investment and puts forward the hypothesis.This paper selects the A share companies of the Shenzhen and Shanghai Stock Exchange from 2013 to 2016 as samples and uses the regression analysis to test the impact of managers' overconfidence on over-investment,the impact of managers' overconfidence on debt maturity structure and the debt maturity structure as an intermediary role in the impact of managers' overconfidence on over-investment.This study finds that:(1)there is a significant positive correlation between managers' overconfidence and over-investment,that is,managers' overconfidence will exacerbate over-investment;(2)there is a significant positive correlation between managers' overconfidence and debt maturity structure,that is,overconfident managers tend to choose short-term debt;(3)the debt maturity structure plays a intermediary role.Finally,this paper puts forward relevant proposals.This paper considers managers' overconfidence,the debt maturity structure and over-investment together to provide the appropriate advice in the managers' overconfidence,debt financing terms and corporate governance,etc.