| In recent years,enterprises are facing crisis and even going bankrupt due to the disconnection of capital chain,which increasingly shows the importance of cash to enterprises,and the decision of cash holdings has always been an important financial decision of enterprises.It is related to the daily operation of enterprises that maintaining what kind of cash holding level.Excessive cash holdings will lead to increased opportunity cost and low use efficiency.However,holding too low cash will make it difficult for enterprises to seize the investment opportunities with good prospects when facing financing constraints.Therefore,enterprise managers are required to make appropriate cash holding decisions in order to maintain the competitiveness and vitality of enterprises.With the development of behavioral finance theory,the theory of “rational economic man” has been broken,and irrational managers will be affected by experience,knowledge,environment and culture when making decisions,showing overconfidence.At present,the research on managerial overconfidence mostly focuses on merger decision-making,investment decision-making,R & D innovation and so on,and few studies involve enterprise cash holding decision-making,moreover,studies on enterprise cash holdings rarely consider the perspective of managerial overconfidence.Therefore,this research attempts to investigate the correlation between managerial overconfidence and enterprise cash holdings from the perspective of behavioral finance,select the financial data of Chinese A-share listed companies from 2011 to 2020,construct explanatory variables based on the characteristics of managers,and explore the regulatory effect of the three on the correlation between them from the perspective of economic policy uncertainty,ownership concentration and financing constraints.The empirical conclusions are as follows: the higher the degree of managerial overconfidence,the more Chinese listed enterprises tend to increase their cash holdings.The positive correlation between managerial overconfidence and Chinese listed enterprise cash holdings decreases with the increase of economic policy uncertainty,increases with the increase of ownership concentration,and increases with the increase of financing constraints. |
