| Since the born of the capital market in the early 1990 s,China's capital market has made tremendous achievements after more than 20 years of changes.However,compared with developed countries,China's capital market is in a period of emerging and transition currently,with market regulations still not perfect,corporate legal awareness still needing to be improved.Under such a realistic situation,frequent violations by listed companies will seriously undermine the order of market.According to the statistics from CSMAR,from 2008 to 2018,there are total 4392 listed companies that have been punished for violations among all A-share companies.When compared from the annual situation,violations did not show a significant reduction trend.Violations occurring in business not only hurt investors' confidence,harm the interests of shareholders,but also affect the economic decisions of stakeholders,such as the reduction of bank loans,the increase in loan costs,and the reduction of commercial credit provided by suppliers.All these pose a huge threat to the healthy development of China's capital market.How to effectively restrain the violations of listed companies and protect the rights of the participating entities in the market has become the focus of the theoretical and practical circles.It is of great practical significance to study the influencing factors of corporate violations.Under the hypothesis of rational man,domestic research widely studies the influencing factors of corporate violations,such as from the perspective of ownership structure and economic growth.Now that the violations cause so much damage to enterprises,why do so many enterprises conduct? What is the risk? The rational hypothesis that human is economic does not seem to fully explain this risky behavior.Unlike studies in china,foreign studies have demonstrated that people's cognitive structure has impact on corporate irregularities.However,the perspective of China's research is less from managers' psychological attitudes.Therefore,In this paper,our article is based on the relationship between overconfidence and violations.we select the data of A-share listed companies among 2008-2017 as a sample,and discuss the following three aspects by establishing a regression model: What's the relationship between managers' overconfidence and corporate irregularities,between managers' overconfidence and corporate risk-taking,between corporate risk-taking and them.The empirical research results show that:(1)Managers' overconfidence has a positive impact on corporate irregularities.(2)Managers' overconfidence has a positive impact on corporate risk-taking.(3)Corporate risk-taking has a mediating effect on the relationship between managers' overconfidence and corporate violations.At the same time,the test results are tested for robustness by the substitution variables,the lag phase and PSM,further supporting the original hypothesis.Finally,the paper puts forward corresponding policy recommendations based on the research results,and points out the possible innovations and limitations of the article.The innovations of this paper are as follows:(1)This paper not only expands the research on the economic consequences of managers' overconfidence,but also enriches the research on the influencing factors of corporate violations.Judging from the existing literature,In China,we lack the literature that directly verified the influence of managers' overconfidence on the tendency of corporate violations by large sample data.This paper finds the “human weakness” from the perspective of behavioral economics,and finds the impact of overconfidence on corporate violations in the discipline of cognitive bias.The research in this paper will make up for the shortcomings of the existing literature.(2)this paper further introduces the research on the intermediary role of enterprise risk-taking on managers' overconfidence and corporate violations,helping to find out the violations motives caused by corporate risk-taking and solve the problem of violations. |
PDF Full Text Request