A Study of the Effects of Overconfidence and Financial Constraints on Corporate Investment Policy

• Main Authors: Ping-heng Lin, 林秉恆
• Other Authors: Chia-Chung Chan
• Format: Others
• Language: zh-TW
• Published: 2008
• Online Access: http://ndltd.ncl.edu.tw/handle/42912200018430532563

碩士 === 東海大學 === 國際貿易學系 === 96 === The samples are classified by the level of managers’ overconfidence and the financial constraints they faced. This thesis aims to examine the effects of managers’ overconfidence and financial constraints on corporate investment policy. We find that the effect of overconfidence is more significant in the intangible investment policy and less significant in the tangible investment policy, and the low overconfident managers are easily influenced by financial constraints. The effect of financial constraints is more significant in the tangible investment policy and less significant in the intangible investment policy. These results show that the effects of managers’ overconfidence are more significant in the intangible investment policy, and the managers will be affected by the lacks of funds in the investment policy under high financial constraints.