Managerial Overconfidence and Corporate Financing Decision: The Moderating Effect of Government Ownership

This paper investigates the impact of managerial overconfidence on corporate financing decision for publicly listed companies in Malaysia for the period of 2002-2011. Pooled OLS, fixed effect method (FEM) panel models and Tobit regressions are employed to examining the relationship between manageri...

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Main Authors:	Irene, Wei Kiong Ting, Hooi, Hooi Lean, Qian, Long Kweh, Noor Azlinna, Azizan
Format:	Conference or Workshop Item
Language:	English
Published:	2014
Subjects:	HG Finance
Online Access:	http://umpir.ump.edu.my/id/eprint/6126/ http://umpir.ump.edu.my/id/eprint/6126/1/ftech-2014-Irene-Managerial_Overconfidence.pdf

id	ump-6126
recordtype	eprints
spelling	ump-61262018-10-11T07:48:18Z http://umpir.ump.edu.my/id/eprint/6126/ Managerial Overconfidence and Corporate Financing Decision: The Moderating Effect of Government Ownership Irene, Wei Kiong Ting Hooi, Hooi Lean Qian, Long Kweh Noor Azlinna, Azizan HG Finance This paper investigates the impact of managerial overconfidence on corporate financing decision for publicly listed companies in Malaysia for the period of 2002-2011. Pooled OLS, fixed effect method (FEM) panel models and Tobit regressions are employed to examining the relationship between managerial overconfidence, government ownership, and leverage decision of publicly listed companies in Malaysia. This is the first study that empirically examines the impact of managerial overconfidence by testing CEO personal characteristics as a main independent variable on corporate financing decision for Malaysian firms. We also make the first attempt to test the moderating effect of government ownership on the relationship of managerial overconfidence and leverage decision. We conclude that (1) CEO overconfidence is significantly and negatively related to corporate financing decision and it is consistent with prior studies. (2) A higher degree of managerial overconfidence would result in lower leverage in GLCs, whereas the effect does not significantly exist in NGLCs. (3) A larger ownership of government in a firm will reduce the negative effect of managerial overconfidence on corporate financing decision. The finding implies that moderating effect of government ownership on the association between managerial overconfidence and corporate financing decision in GLCs is more effective than NGLCs. 2014 Conference or Workshop Item PeerReviewed application/pdf en http://umpir.ump.edu.my/id/eprint/6126/1/ftech-2014-Irene-Managerial_Overconfidence.pdf Irene, Wei Kiong Ting and Hooi, Hooi Lean and Qian, Long Kweh and Noor Azlinna, Azizan (2014) Managerial Overconfidence and Corporate Financing Decision: The Moderating Effect of Government Ownership. In: 16th Malaysian Finance Association Conference 2014, 4-6 June 2014 , Kuala Lumpur. .
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Malaysia Pahang
building	UMP Institutional Repository
collection	Online Access
language	English
topic	HG Finance
spellingShingle	HG Finance Irene, Wei Kiong Ting Hooi, Hooi Lean Qian, Long Kweh Noor Azlinna, Azizan Managerial Overconfidence and Corporate Financing Decision: The Moderating Effect of Government Ownership
description	This paper investigates the impact of managerial overconfidence on corporate financing decision for publicly listed companies in Malaysia for the period of 2002-2011. Pooled OLS, fixed effect method (FEM) panel models and Tobit regressions are employed to examining the relationship between managerial overconfidence, government ownership, and leverage decision of publicly listed companies in Malaysia. This is the first study that empirically examines the impact of managerial overconfidence by testing CEO personal characteristics as a main independent variable on corporate financing decision for Malaysian firms. We also make the first attempt to test the moderating effect of government ownership on the relationship of managerial overconfidence and leverage decision. We conclude that (1) CEO overconfidence is significantly and negatively related to corporate financing decision and it is consistent with prior studies. (2) A higher degree of managerial overconfidence would result in lower leverage in GLCs, whereas the effect does not significantly exist in NGLCs. (3) A larger ownership of government in a firm will reduce the negative effect of managerial overconfidence on corporate financing decision. The finding implies that moderating effect of government ownership on the association between managerial overconfidence and corporate financing decision in GLCs is more effective than NGLCs.
format	Conference or Workshop Item
author	Irene, Wei Kiong Ting Hooi, Hooi Lean Qian, Long Kweh Noor Azlinna, Azizan
author_facet	Irene, Wei Kiong Ting Hooi, Hooi Lean Qian, Long Kweh Noor Azlinna, Azizan
author_sort	Irene, Wei Kiong Ting
title	Managerial Overconfidence and Corporate Financing Decision: The Moderating Effect of Government Ownership
title_short	Managerial Overconfidence and Corporate Financing Decision: The Moderating Effect of Government Ownership
title_full	Managerial Overconfidence and Corporate Financing Decision: The Moderating Effect of Government Ownership
title_fullStr	Managerial Overconfidence and Corporate Financing Decision: The Moderating Effect of Government Ownership
title_full_unstemmed	Managerial Overconfidence and Corporate Financing Decision: The Moderating Effect of Government Ownership
title_sort	managerial overconfidence and corporate financing decision: the moderating effect of government ownership
publishDate	2014
url	http://umpir.ump.edu.my/id/eprint/6126/ http://umpir.ump.edu.my/id/eprint/6126/1/ftech-2014-Irene-Managerial_Overconfidence.pdf
first_indexed	2023-09-18T22:01:37Z
last_indexed	2023-09-18T22:01:37Z
_version_	1777414436686921728

Managerial Overconfidence and Corporate Financing Decision: The Moderating Effect of Government Ownership

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