| The 2017 central economic work conference determined that we must guard against financial risks in the next three years.In the 2018 meeting,it was pointed out that it is necessary to adhere to the basic ideas of structural deleveraging to prevent abnormal fluctuations in financial markets.For companies,the key to preventing financial risks is that they cannot be separated from their capabilities and use a lot of leverage to support excessively large assets.Financial leverage is a commonly used management tool and management means in enterprises.Skillfully using debt management can make the capital of enterprises grow exponentially under the effect of leverage and promote the rapid development of enterprises.However,excessive debt will also bring pressure on enterprises to repay principal and interest on maturity,especially debt with a short term.In the debt management decision,management is the key to the decision,the psychological characteristics of managers will directly affect the debt financing plan proposed and adopted.In recent years,behavioral finance has gradually gained a place in the academic circle.A large number of achievements have shown that managers tend to be overconfident,overestimate their abilities and make aggressive or even radical decisions in the process of business operation.From the perspective of ultimate controller,ultimate controller is the ultimate acceptor of the business results,and they will affect the relevant decisions of managers through predicting the results.Corporate debt financing decision has a great influence on its survival and development.Corporate debt financing mainly includes debt level and debt maturity structure.The level of debt is an important reflection of the capital structure decision of an enterprise.Compared with equity financing,the cost of capital of debt is lower and the rights of shareholders will not be diluted.However,excessive debt size will convey the signal of poor operating conditions to the outside world,and will reduce the credit level of enterprises and increase the possibility of enterprises in financial distress.Debt maturity structure reflects the collocation relationship between long-term debt and short-term debt.Long-term debt has a high cost of capital but relatively little pressure to repay.Short-term debt has a lower cost of capital but is under greater pressure to repay in the near term.It is precisely because of the duality of corporate debt financing that the research related to this topic is enduring and it is of great significance to study it in the new context.Most theories that can explain corporate debt financing arrangements are premised on the assumption of rational economic man.With the development of society and the complex diversification of economic phenomena,the hypothesis of rational economic man has been questioned by the academia.Behavioral finance,which has been widely concerned in recent years,focuses on the discussion of irrational behavior,and its research mainly focuses on the performance of human behavior in economic phenomena.Irrational behavior is mainly manifested in the overconfidence of managers in enterprises,which will directly lead to the deviation of relevant business decisions.In this context,this paper not only discusses the relationship between overconfidence of managers and debt financing of enterprises,but also includes the ultimate controller of enterprises into the empirical study to test the moderating effect of the nature of ultimate controller,Cash flow weight ratio and degree of separation of two rights on the relationship between them.This is also the innovation of this paper.Firstly,this paper takes the debt ratio of enterprises,the proportion of long-term debt and total debt as the indicators to measure the debt level and debt maturity structure of the explained variables.The relative compensation of managers was taken as the measurement index of managers’ overconfidence.Examine the relationship between overconfidence and debt financing.Secondly,the nature of the ultimate controller,the proportion of cash flow weights and the degree of separation of the two weights are taken as moderator variables multiplied by explanatory variables to form an interactive term to test the moderating effect of these three characteristics on the relationship between overconfidence of managers and debt financing.Based on the empirical analysis of 6,116 non-equilibrium panel data of 1,482 a-share listed companies from 2012 to 2017,the following results are obtained :(1)The relationship between managers’ confidence level and corporate debt level and debt maturity structure is significantly negative.(2)State-owned ultimate controller has no significant moderating effect on the relationship between overconfidence and debt level,and has significant restraining effect on the negative correlation between overconfidence and debt maturity structure.(3)The ultimate control of the proportion of people’s cash flow has a significant promoting effect on the negative correlation between overconfidence and debt level,but has no significant regulating effect on the relationship between overconfidence and debt maturity structure.(4)The degree of separation of two weights of ultimate controller has no significant moderating effect on the relationship between overconfidence and debt level and debt maturity structure.Therefore,the following Suggestions are put forward:(1)At the macro level,the government should strengthen the external supervision mechanism of enterprises.When preventing and defusing financial risks,the enterprise debt should be in a reasonable state by formulating corresponding policies and measures.To protect the interests of minority shareholders and debtors through legal means and promote the standardized operation of enterprises;A certain degree of information disclosure system will be implemented to include the ultimate controller and enterprise executives in the scope of disclosure and strengthen the supervision role of Banks,media and other intermediaries.(2)At the micro level,enterprises should establish an overall performance evaluation mechanism for managers,reasonably select and hire managers,supervise abnormal behaviors of managers,timely detect and stop behavioral deviations of overconfident managers,and avoid major decision-making mistakes;At the same time,the company should establish and improve the corporate governance structure and mechanism,optimize the enterprise’s equity structure,and weaken the adverse influence of the ultimate controller on the major decisions of the enterprise by promoting the diversification of the equity subjects and increasing the degree of equity diversification,so as to improve the company’s operating conditions. |
PDF Full Text Request