Managerial overconfidence, internal financing, and investment efficiency: Evidence from China

被引：77
|
作者：
He, Ying [1 ]
Chen, Cindy [2 ]
Hu, Yue [1 ]
机构：
[1] Beijing Univ Posts & Telecommun, Sch Econ & Management, Beijing, Peoples R China
[2] Calif State Univ Long Beach, Coll Business Adm, 1250 Bellflower Blvd, Long Beach, CA 90840 USA
来源：
RESEARCH IN INTERNATIONAL BUSINESS AND FINANCE | 2019年 / 47卷
关键词：
Investment; capacity and financing; Corporate governance; Behavioral finance; CEO OVERCONFIDENCE; OVER-INVESTMENT; CORPORATE; ACQUISITIONS; RISK;
D O I：
10.1016/j.ribaf.2018.09.010
中图分类号：
F8 [财政、金融];
学科分类号：
0202 ;
摘要：
Using companies listed in China's Shanghai Exchange and Shenzhen Exchange in 2010-2015 as a sample, we test the impact of managerial overconfidence on choice of internal financing and investment efficiency (investment scale; overinvestment and underinvestment). We show that internal financing can fund business opportunities and alleviate capital shortages but may also cause excessive investment, especially in firms with managerial overconfidence. This overinvestment problem is more significantly related to managerial overconfidence in state-owned than non-state enterprises.
引用
收藏
页码：501 / 510
页数：10
相关论文
共 50 条
  • [11] Benefits of managerial overconfidence for corporate digital transformation: Evidence from China
    Jin, Yi
    Chen, Chuxin
    Liu, Bo
    PLOS ONE, 2024, 19 (11):
  • [12] Research on investment behavior on the perspective of managerial overconfidence: Evidence from anhui listed companies
    Yu, Jun
    Wang, Shu-Zhen
    Ng, Pm
    Yang, Zi
    Information Technology Journal, 2013, 12 (19) : 5154 - 5159
  • [13] The Impact of Financing Constraints on the Efficiency of Investment and Construction: Evidence from Municipal Infrastructure in China
    Li, Xiaojie
    Li, Hao
    Qiu, Fei
    SAGE OPEN, 2024, 14 (02):
  • [14] Manufacturing R&D investment efficiency and financing constraints: evidence from China
    Guo, Lu
    Long, WeiYa
    Dai, Zhimin
    APPLIED ECONOMICS, 2021, 53 (06) : 676 - 687
  • [15] Managerial ability, internal control and investment efficiency
    Chen, Suyun
    Li, Zongze
    Han, Binbin
    Ma, Hengyun
    JOURNAL OF BEHAVIORAL AND EXPERIMENTAL FINANCE, 2021, 31
  • [16] Managerial Overconfidence, Self-Attribution Bias, and Downwardly Sticky Investment: Evidence from Korea
    Koo, Jeong-Ho
    Yang, Daecheon
    EMERGING MARKETS FINANCE AND TRADE, 2018, 54 (01) : 144 - 161
  • [17] Monetary policy, financing constraints and investment efficiency Evidence from listed private companies of China
    Han, Dongping
    Zhang, Peng
    NANKAI BUSINESS REVIEW INTERNATIONAL, 2016, 7 (01) : 80 - 98
  • [18] Managerial characteristics and stock market investment: evidence from China
    Yang, Jingjing
    Xin, Yuan
    Jun, Xiao
    ACCOUNTING AND FINANCE, 2019, 59 : 2017 - 2044
  • [19] Managerial overconfidence, government intervention and corporate financing decision
    Ting, Irene Wei Kiong
    Lean, Hooi Hooi
    Kweh, Qian Long
    Azizan, Noor Azlinna
    INTERNATIONAL JOURNAL OF MANAGERIAL FINANCE, 2016, 12 (01) : 4 - 24
  • [20] Managerial overconfidence and firm financing decision: an Indonesian case
    Murhadi, Werner Ria
    PROCEEDINGS OF THE 15TH INTERNATIONAL SYMPOSIUM ON MANAGEMENT (INSYMA 2018), 2018, 186 : 71 - 75
12345