Manager Overconfidence,M&A Behavior And Economic Consequences

This paper took Zijin Mining as the object of study and used the theory of managers overconfidence,first of all screened out applicable standards to measure the management of excessive self-confidence from the previous literature,and judged whether Zijin Mining's managemen was overconfident.Then this paper analyzed Zijin Mining's M & A behavior including financing models and payment methods.Finally,this paper studied the economic consequences of these mergers and acquisition from two aspects: capital market response and financial performance.The study found that managers with overconfident characteristics tend to make overseas acquisitions and prefer cash payments and debt financing,but overseas acquisitions do not improve corporate performance,but can lead to negative wealth effects.The research of this paper adopts the form of case analysis,expands the research scope of managers' excess self-confidence theory in the field of overseas mergers and acquisitions of emerging capital market companies,and helps to avoid the blind optimism and overconfidence in the implementation of overseas acquisitions under the " Belt and Road Initiatives" strategy.