抽象的

Managerial over-confidence and inefficient investment of enterprises-empirical researchbased on view of enterpriselifecycle

Hou Qiaoming, Song Li, Jiang Yapeng

This paper analyzes dynamic change of the managerial over-confidence and its influence on the inefficient investment of enterprises on different stages of enterpriseÂ’s lifecycle and performs empirical validation. The results indicate that the over-confidence of the managers will weaken with evolution of enterprise lifecycle. The managerial overconfidence has no significant difference in the growth period and mature period, but the over-confidence level in the growth period is significantly higher than it in the declination period. The over-confidence level of managers in the growth period will have the strongest influences on the inefficient investment of enterprises. The over-confidence in the mature period and declination period has significantly reducing influences on the inefficient investment.