Abstract
Based on the managerial overconfidence hypothesis in behavioral corporate finance,the paper studies the effect of executive confidence on corporate financing decisions. The empirical results indicate that there is an obvious positive correlation between executive overconfidence and capital structure, executive overconfidence can enhances corporate financial leverage ratio. But board independence can curb executive overconfidence,the more independent board is, the more restrained executive overconfidence is, and the positive relationship between executive overconfidence and financial leverage is much weaker.
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Schedule a callMore From: 2010 IEEE International Conference on Advanced Management Science (ICAMS 2010)
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