Research On Fuguiniao Debt Crisis From The Perspective Of Managers Overconfidence

China is at an important stage of economic transformation and development,and the company is also facing a constantly changing and complex market environment.Over the past few years,a large number of listed companies have been affected by their poor operating conditions,which has affected their normal and sustainable development.The Securities Regulatory Commission issued a delisting warning and the company fell into a debt crisis.However,most of the academic community analyzes the debt crisis from the perspective of company management,and rarely analyzes the behavior of managers who make decisions.Existing research shows that people in an unknown environment are more likely to produce irrational behavior,and the company's own environment is more likely to breed many uncertain situations,so company executives usually make some irrational plans.Among them,the psychological deviation of overconfidence is a typical manifestation of irrational factors.This kind of cognition will lead to errors in managers' decision-making,which will lead to distorted economic consequences for the company and eventually cause the company to fall into a debt crisisThis article adopts the literature research method and case analysis method,based on the perspective of executives' overconfidence,taking Fuguiniao Co.,Ltd.(Fuguiniao)as the research object,to conduct research on the root causes of the company's debt crisis,and analyzes the overconfidence of the executives to bring the company Influence.According to the financial report of the company from 2012 to 2017 and the company's announcement,the company's debt crisis was analyzed using financial ratio analysis and vertical comparison.At the same time,according to the management's own behavior,it adopts a variety of measurement methods such as executive shareholding change method,mainstream media reporting method,and M&A frequency method to measure the degree of overconfidence of the company 's executives.Next,this article explores the internal causes of the debt crisis of Fortune Bird Company through three ways of investment behavior,financing behavior and violation behavior under the influence of managers' overconfidence,and draws corresponding conclusions and enlightenment accordinglyhe conclusion of the study shows that the management of Fortune Bird does have overconfident behavior,and this psychology has been converted into over investment,high debt financing and illegal operations in corporate expansion decisions,which has caused Fortune Bird into a debt crisis.In the end,the paper draws a revelation and believes that the psychological deviation of enterprise managers should be controlled at the root to ensure that the company expands appropriately.This article enriches the related theories of behavioral finance such as corporate debt crisis and managers' overconfidence,and provides new individual cases for theoretical research,which can help companies to conduct business management.At the same time,I also hope that other traditional enterprises can learn from it and achieve sustainable development.