主  题:Does Overconfidence lead to more entrusted Loans? Evidence from Chinese listed firms

内容简介:The  study analyzes the entrusted loans from 2007 to 2016 from listed firms  in China, investigating the relationship between managers’  overconfidence and firms’ allocation of entrusted loans, and how the  relationship varies with firms’ level of free cash flow and internal  governance. Our results reveal that managers’ overconfidence affects  firms’ decisions on entrusted loans positively, the more overconfident  the managers is, the more possibility that firm will lend and at a high  level. Further exploration indicates that overconfident managers are  more motivated to distribute entrusted loans and with large amount if  the firm has sufficient free cash flows, additionally, the internal  governance as represented by CEO duality and large shareholders’  ownership are found to be effective in explaining the issuance of  entrusted loans in firms with overconfidence managers, however,  overconfident managers in state-owned firms perform greater inclination  to lend.

报告人:许力      博士

时  间:2018-11-28    15:30

地  点:位育楼117