| Financing behavior is one of most basic financial activities of enterprise. From MM theory,the principal-agent theory and information asymmetry theory, most scholars studied theproblem of the capital structure. But the most studies are based on the “hypothesis ofrational man” which in real life was suspected. In recent years, with the rise of financingbehavioral, the studies, how the managerial over-confidence impact the financingbehavioral, are gradually becoming one of the hot issues. On this subject, the west haveaccumulated abundant of literature, but it is identified that the results of the literature areapplicable to the situation of China’s capital market. So it is very significance to studyfinancing behavior impacted by the managerial overconfidence in the Chinese specialbackground.On the basis of Chinese particular situation, and from the point of the managerialoverconfidence, according to the traditional theory, such as MM theory, the principal-agenttheory etc, the article choose the date of Chinese manufacturing A shares of the listedcompany from2006to2010as the sample. It studies the capital structure and the debtmaturity influenced by the managerial overconfidence with the empirical method. Thearticle gets the following main conclusion:(1) Managerial overconfidence and the capitalstructure are positive correlation, managers who are overconfident tend to the debtfinancing. Because the overconfident managers overestimate the benefit of the projectand underestimate the risk of project，they believe that the financial risk of the enterprise issmall, so they like the debt financing.(2) Managerial overconfidence and the debt maturitystructure are positive correlation, managers who are overconfident tend to the short termdebt financing. Because the overconfident managers think that the investment projects inthe short term will be able to generate enough cash flow to pay the principal and interest ofthe short-term debt. |
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