The Analysis Of Managerial Overconfidence With The Debt Maturity Structure Of Corporate And The Operating Performance

The debt maturity structure of corporate and the operating performance are the keyconsiderations that related to the survival and development of Modern Corporations. All thetime, the research about the debt maturity structure of corporate and the operatingperformance mainly concentrates in the rational hypothesis that based on the company’s profitand profit rate, and the relevant research that from the perspective of managerialoverconfidence is relatively scarce. In recent years, with the improve of the development ofbehavioral finance, the psychological factors of enterprise management have gradually beenpart of domestic and foreign economists’ favor, especially the impact of managerialoverconfidence on the business, including corporate debt maturity structure influence as wellas the operating performance.This article is committed to the listed company managers overconfidence by exploringthe impact of debt maturity structure and corporate performance, and then come to theconclusion reference to rich the research of the managers overconfidence in related fields,and provide favorable suggestions for the managers of the enterprise in practice, with someof the theoretical and practical significance.First of all, we start from the basic theory ofoverconfidence literature review, and then a brief review of the domestic and foreignmanagers overconfidence of corporate debt maturity structure and operating performance ofthe research literature, finaly summed up some problems of the existing research.Secondly,the paper learns from the relevant research both at home and abroad, with an analysis of themanagers of the excessive self-confidence related theory and made the corresponding researchassumes, and in order to validate the assumptions made in this document,we selected the top500listed companies of Shanghai and Shenzhen during2006to2010as a research sample,and then removed the ST financial enterprises as well as company financial data is missing orabnormally, finaly get294listed companies as the sample data.According to the metrics thatscholars at home and abroad used in the study of managers overconfident. proposed indicators for measuring managers overconfident in our actual situation.And then, empirical testing. Inthe selection of the sample company variable for descriptive statistical analysis,foundthat,managers truly are generally over-confidence in the listed companies in China.Then,through the establishment of overconfidence measure to the regression models wereconstructed to affect corporate debt maturity structure and business performance, followed byan empirical analysis and test results.The empirical results show that: in China’s listedcompanies, the manager’s overconfidence variables and corporate debt maturity structureshows a significant negative correlation, that overconfident managers are more likely tochoose the short-term debt rather than long-term debt; and the overconfidence of managerswill due to the occurrence of investment alienation behavior when making investmentdecisions, which would have a negative impact on the business performance of theenterprise.Finally, according to the relevant research results, this paper proposes some policysuggestions, and points out the shortcomings of this study and research prospect.