Managerial Overconfidence and Debt Decision: Evidence from Malaysia

This paper investigates the impact of managerial overconfidence and firm’s debt decision. Dynamic panel models are employed to examine the relationship between managerial overconfidence and debt decision of publicly listed companies in Malaysia for the period of 2002-2011. The objective of...

Full description

Bibliographic Details
Main Authors:	Irene, Wei Kiong Ting, Noor Azlinna, Azizan
Format:	Article
Language:	English
Published:	Academic Research Online Publisher 2015
Subjects:	HD Industries. Land use. Labor HD28 Management. Industrial Management
Online Access:	http://umpir.ump.edu.my/id/eprint/10184/ http://umpir.ump.edu.my/id/eprint/10184/ http://umpir.ump.edu.my/id/eprint/10184/1/fim-2015-azlinna-Managerial%20Overconfidence.pdf

id	ump-10184
recordtype	eprints
spelling	ump-101842018-10-11T07:45:38Z http://umpir.ump.edu.my/id/eprint/10184/ Managerial Overconfidence and Debt Decision: Evidence from Malaysia Irene, Wei Kiong Ting Noor Azlinna, Azizan HD Industries. Land use. Labor HD28 Management. Industrial Management This paper investigates the impact of managerial overconfidence and firm’s debt decision. Dynamic panel models are employed to examine the relationship between managerial overconfidence and debt decision of publicly listed companies in Malaysia for the period of 2002-2011. The objective of this study is to investigate the relationship between managerial overconfidence and firm debt decisions from three perspectives based on MARS model. The findings are as follows. (1) When CEOs are motivated, their overconfidence is significantly and positively related to debt; (2) CEOs’ ability is significantly and positively related to debt; (3) Younger CEOs are taking more risk than older CEOs in Malaysian firm. (4) CEO who implement dual leadership structure tends to choose less debt; (5) Female CEOs are more confident and prefer more debt in Malaysian firms; (6) Firm debt is lower when CEO is also the founder. This study adds to the literature on behavioural finance by examining managerial over confidence and its impact to debt decision. The study also makes the methodology contribution by employing dynamic panel model to test the effect of managerial overconfidence and corporate debt decision Academic Research Online Publisher 2015 Article PeerReviewed application/pdf en cc_by http://umpir.ump.edu.my/id/eprint/10184/1/fim-2015-azlinna-Managerial%20Overconfidence.pdf Irene, Wei Kiong Ting and Noor Azlinna, Azizan (2015) Managerial Overconfidence and Debt Decision: Evidence from Malaysia. Journal of Advanced & Applied Sciences (JAAS), 3 (4). pp. 125-135. ISSN 2289-6260 http://www.aropub.org/wp-content/uploads/2015/08/Management-NCON-PGR-S02-004-CR.pdf
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Malaysia Pahang
building	UMP Institutional Repository
collection	Online Access
language	English
topic	HD Industries. Land use. Labor HD28 Management. Industrial Management
spellingShingle	HD Industries. Land use. Labor HD28 Management. Industrial Management Irene, Wei Kiong Ting Noor Azlinna, Azizan Managerial Overconfidence and Debt Decision: Evidence from Malaysia
description	This paper investigates the impact of managerial overconfidence and firm’s debt decision. Dynamic panel models are employed to examine the relationship between managerial overconfidence and debt decision of publicly listed companies in Malaysia for the period of 2002-2011. The objective of this study is to investigate the relationship between managerial overconfidence and firm debt decisions from three perspectives based on MARS model. The findings are as follows. (1) When CEOs are motivated, their overconfidence is significantly and positively related to debt; (2) CEOs’ ability is significantly and positively related to debt; (3) Younger CEOs are taking more risk than older CEOs in Malaysian firm. (4) CEO who implement dual leadership structure tends to choose less debt; (5) Female CEOs are more confident and prefer more debt in Malaysian firms; (6) Firm debt is lower when CEO is also the founder. This study adds to the literature on behavioural finance by examining managerial over confidence and its impact to debt decision. The study also makes the methodology contribution by employing dynamic panel model to test the effect of managerial overconfidence and corporate debt decision
format	Article
author	Irene, Wei Kiong Ting Noor Azlinna, Azizan
author_facet	Irene, Wei Kiong Ting Noor Azlinna, Azizan
author_sort	Irene, Wei Kiong Ting
title	Managerial Overconfidence and Debt Decision: Evidence from Malaysia
title_short	Managerial Overconfidence and Debt Decision: Evidence from Malaysia
title_full	Managerial Overconfidence and Debt Decision: Evidence from Malaysia
title_fullStr	Managerial Overconfidence and Debt Decision: Evidence from Malaysia
title_full_unstemmed	Managerial Overconfidence and Debt Decision: Evidence from Malaysia
title_sort	managerial overconfidence and debt decision: evidence from malaysia
publisher	Academic Research Online Publisher
publishDate	2015
url	http://umpir.ump.edu.my/id/eprint/10184/ http://umpir.ump.edu.my/id/eprint/10184/ http://umpir.ump.edu.my/id/eprint/10184/1/fim-2015-azlinna-Managerial%20Overconfidence.pdf
first_indexed	2023-09-18T22:09:31Z
last_indexed	2023-09-18T22:09:31Z
_version_	1777414933131034624

Managerial Overconfidence and Debt Decision: Evidence from Malaysia

Similar Items