Research On The Impact Of Managers Overconfidence On The Operationg Performance Impact Of Chinese Listed Company

In recent years, with the rise of behavioral finance theory, corporate finance researchers have begun torecognize the irrational behavior of managers may have an impact on the company. As an important part ofbehavioral finance theory, theory on managerial overconfidence abandons rational agent hypotheses, takesthe overconfidence of executive which is a very normal psychological feature as a breakthrough and studiesits impact on the company's investment behavior. All of these are in the best interests of interpreting animproved service to the distortions in investment behavior. Executives are the key decision-makers of thecorporation. At the same time, they are the key factors to influence business performance. For the timebeing, studies on the theory of managerial overconfidence are relatively mature, but when it comes to theinfluence between overconfidence executive and corporate performance, it's not that mature. This articletries to discus how executive of listed company influence the corporate performance,dig the mechanism ofhow the overconfidence executive influence the corporate performance. Its purpose lies in enriching studieson the theory of managerial overconfidence and holding a mirror to present management practice.First of all, this article tries to analyze the basis of theory of managerial overconfidence,gets a briefreview of domestic and foreign articles which study on how overconfidence executive influence theinvesting and financing , summarizes some problems of current research to find out the innovation of thisarticle.Secondly, after analyzing how overconfidence executive influence the corporate performance, fourassumptions are listed. In order to verify the establishment of these four assumptions, all listed companiesin Shanghai Stock Exchange in 2007-2009 were chosen as samples. Get rid of the unsatisfactory samples,there were 737 listed companies remained. And then, on the basis of summary the samples which domesticand foreign researchers has used so far,the article eliminated the samples which are on line with ourpresent measure.Thirdly, begin to empirically. Selection of the sample company variables descriptive statistical analysisfound that the listed companies in China, and the number of existing overconfidence managers. Therelevant analysis found that managers overconfidence and business performance; Then a comparativeanalysis of the managers of overconfidence that two separate, moderate concentration of ownership andprivate ownership decentralization, the operation performance of listed companies did not differsignificantly influence, Finally, the overall samples to establish model and regression analysis of samples,on the basis of comparative analysis on this assumption, further verification conclusion managersoverconfidence on business performance will produce negative influence, but a listed company maythrough perfecting corporate governance to abate the negative effect.Finally, a brief summary is given. Depend on this, some suggestions are formulated at macroscopicview and microscopic view.