A Study Of M&A Financing Behavior Based On Managers Overconfidence

As an investment，sufficient fund is an important guarantee of the success of M&A.Therefore，M&A financing has become the key factor influencing the success of M&A.Research on the influence factors of M&A financing behavior has always been an academichot spot.Recently，the rise of behavioral corporate finance theory broke through the rationalframework and the paradigm of traditional corporate finance theory. Corporate finance theorypay attention to the psychological analysis of decision makers and actual behavior，itshypothesis was more in line with the present situation of the capital market. In the field ofM&A，behavioral corporate finance has carried on the positive argument for a series of"financial vision"，and put forward a new explanation. At present，our country securitiesmarket development is not mature，deepen reform of state-owned enterprises is on the way，entrust-agent problems of listed companies was generally exist，investors and managers’irrational behavior may be combined, which can cause managers make irrational M&Afinancing behavior，and this is not conducive to the healthy development of listed companiesin our country. Thus，using behavioral corporate finance theory to study the M&A financingbehavior of listed companies is very important to the governance of listed companies in Chinaand the healthy development of M&A.View of this，this article did a study on the influence of managers’ overconfidence tolisted company’s M&A financing behavior in our country. This article included five parts：firstly，established the research purpose and significance through the background researching；secondly，made the definition of the concept of managers overconfidence and M&A financingbehavior，and analyzes the path of managers overconfidence influence on M&A financingbehavior；thirdly，contrasted the M&A financing behavior of Chinese listed companies withforeign enterprises to finded out the problem that exist in listed company M&A financingbehavior in our country，and given reasons from managers irrational and investors irrational；fourthly，analysed current measure of managers overconfidence，chosed the frequency ofM&A to metrics managers overconfidence，According to traditional financial theory，determines control variables of the empirical analysis, and building the research model of thisarticle，using2009to2011listed companies in our country which have M&A as samples，did a regression analysis；finally， made recommendations for governance of listed companymanagers overconfidence and the improvement of M&A financing behavior from managers,corporate and market.