文章基本信息

标题：Managerial overconfidence and over-investment: Empirical evidence from China
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作者：Xia Wang ; Min Zhang ; Fusheng Yu 等
期刊名称：Frontiers of Business Research in China
印刷版ISSN：1673-7326
电子版ISSN：1673-7431
出版年度：2009
卷号：3
期号：3
页码：453-469
DOI：10.1007/s11782-009-0022-2
出版社：Higher Education Press, co-published with Springer-Verlag GmbH
摘要：Based on data of A-shares listed companies in China, this paper studies the relationship between managerial overconfidence and firms’ overinvestment behaviors. We first define a manager as an overconfident one if his or her compan’s announced earnings forecast is higher than its actual earnings at least once in 2002–2004. After controlling such factors as growing opportunity, size, etc., we find that overconfident managers tend to over-invest and their overinvestment behaviors have higher sensitivity to cash flow generated by financing activities. In other word, when their firms obtain an abundant cash flow from financing activities, overconfident managers will over-invest, or vise versa. Contrary to other relevant studies, we find that the sensitivity between over-investment and free cash flow has little to do with managerial overconfidence. Robustness testing is conducted to verify the reliability of our conclusions. We also use “whether top managers increase their holdings of company shares within the observation period” as a substitute variable for managerial overconfidence and run the tests again, and the results are consistent with the above. Finally, findings of this paper indicate that it is necessary for firms to establish a scientific and rigorous investment managing mechanism.
关键词：over-investment; overconfidence; cash flow from financing activities;free cash flow
其他关键词：过度投资，过度自信，融资现金流，自由现金流