Research On The Influence Of Chairmen's Early Growth Economic Environment On Corporate Financing Decision

Based on the perspective of behavioral finance,this essay takes 2010-2016 A-share listed companies as samples and studies the influence of the of chairmen's early growth environment on the later corporate financing decisions.This essay mainly focuses on the relationship between the economic environment of the chairmen's early state of growth and the capital structure of the company.The results show that the better the economic condition in early stage of growth,the more risk averse the chairman would be,leading to a lower total debt ratio and a lower short-term debt ratio in later corporate financing decision.On the contrary,the worse the economic condition in early stage of growth,the less risk averse the chairman would be,leading to a higher total debt ratio and a higher short-term debt ratio in the future.In addition,this essay examines the influence on enterprises with different state nature and finds that the conclusions in non-state-owned enterprises are in accordance with the conclusions in whole samples,while the result in state-owned enterprise are not significant in the regression,which means chairman's personal risk preference has no significant impact on corporate capital structure in state-owned enterprise.Furthermore,this essay examines the influence on chairmen with different birth year and finds that the Great Chinese Famine will weaken the impact of general economic environment on chairman's psychological characteristics and their later decisions.However,the results among those who were born after the Great Chinese Famine are in accordance with the conclusions in whole samples.For enterprises,recognizing the influence of chairmen's risk preference on corporate capital structure helps to correct their irrational behavior and constantly optimize the corporate capital structure in the process of operation.As a result,it will provide help to improve efficiency of decisionmaking and competitiveness of the enterprise,realizing the sustainable development.