Managerial Overconfidence and Leverage Decision. The Moderating Effect of Human Governance in Malaysia
This paper examines the firm's leverage decision from new perspectives, namely managerial overconfidence and human governance. The balanced panel sample covers Malaysian public listed companies from 2002 to 2011. The objectives of this study are to investigate the relationship between manageria...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Inderscience Enterprises Ltd.
2016
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| Subjects: | |
| Online Access: | http://umpir.ump.edu.my/id/eprint/12009/1/Managerial%20Overconfidence%20and%20Leverage%20Decision.%20The%20Moderating%20Effect%20of%20Human%20Governance%20In%20Malaysia.pdf |
| _version_ | 1796991071204409344 |
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| author | Irene, Wei Kiong Ting Noor Azlinna, Azizan Kweh, Qian Long |
| author_facet | Irene, Wei Kiong Ting Noor Azlinna, Azizan Kweh, Qian Long |
| author_sort | Irene, Wei Kiong Ting |
| collection | UMP |
| description | This paper examines the firm's leverage decision from new perspectives, namely managerial overconfidence and human governance. The balanced panel sample covers Malaysian public listed companies from 2002 to 2011. The objectives of this study are to investigate the relationship between managerial overconfidence and its moderating effect on the relationship between CEO personal characteristics and firm leverage decisions. The findings are as follows: 1) CEO overconfidence, age and prior experience are significantly negative related to leverage; 2) The higher the education, the higher the debts; 3) CEO tenure is significantly positive related to leverage; 4) The higher the overconfidence level in presence of their age, the more the debts; 5) Firm leverage is lower when CEO with higher educational degree has higher confidence level. The result of the paper can fill the gap in the literature on the managerial overconfidence and its relationship with leverage decision of Malaysian public listed companies. |
| first_indexed | 2024-03-06T12:00:53Z |
| format | Article |
| id | UMPir12009 |
| institution | Universiti Malaysia Pahang |
| language | English |
| last_indexed | 2024-03-06T12:00:53Z |
| publishDate | 2016 |
| publisher | Inderscience Enterprises Ltd. |
| record_format | dspace |
| spelling | UMPir120092022-03-29T03:56:05Z http://umpir.ump.edu.my/id/eprint/12009/ Managerial Overconfidence and Leverage Decision. The Moderating Effect of Human Governance in Malaysia Irene, Wei Kiong Ting Noor Azlinna, Azizan Kweh, Qian Long T Technology (General) TA Engineering (General). Civil engineering (General) This paper examines the firm's leverage decision from new perspectives, namely managerial overconfidence and human governance. The balanced panel sample covers Malaysian public listed companies from 2002 to 2011. The objectives of this study are to investigate the relationship between managerial overconfidence and its moderating effect on the relationship between CEO personal characteristics and firm leverage decisions. The findings are as follows: 1) CEO overconfidence, age and prior experience are significantly negative related to leverage; 2) The higher the education, the higher the debts; 3) CEO tenure is significantly positive related to leverage; 4) The higher the overconfidence level in presence of their age, the more the debts; 5) Firm leverage is lower when CEO with higher educational degree has higher confidence level. The result of the paper can fill the gap in the literature on the managerial overconfidence and its relationship with leverage decision of Malaysian public listed companies. Inderscience Enterprises Ltd. 2016 Article PeerReviewed application/pdf en http://umpir.ump.edu.my/id/eprint/12009/1/Managerial%20Overconfidence%20and%20Leverage%20Decision.%20The%20Moderating%20Effect%20of%20Human%20Governance%20In%20Malaysia.pdf Irene, Wei Kiong Ting and Noor Azlinna, Azizan and Kweh, Qian Long (2016) Managerial Overconfidence and Leverage Decision. The Moderating Effect of Human Governance in Malaysia. Journal for Global Business Advancement (JGBA), 9 (1). pp. 38-51. ISSN 1746-966X (print); 1746-9678 (online). (Published) http://dx.doi.org/10.1504/JGBA.2016.074894 DOI: 10.1504/JGBA.2016.074894 |
| spellingShingle | T Technology (General) TA Engineering (General). Civil engineering (General) Irene, Wei Kiong Ting Noor Azlinna, Azizan Kweh, Qian Long Managerial Overconfidence and Leverage Decision. The Moderating Effect of Human Governance in Malaysia |
| title | Managerial Overconfidence and Leverage Decision. The Moderating Effect of Human Governance in Malaysia |
| title_full | Managerial Overconfidence and Leverage Decision. The Moderating Effect of Human Governance in Malaysia |
| title_fullStr | Managerial Overconfidence and Leverage Decision. The Moderating Effect of Human Governance in Malaysia |
| title_full_unstemmed | Managerial Overconfidence and Leverage Decision. The Moderating Effect of Human Governance in Malaysia |
| title_short | Managerial Overconfidence and Leverage Decision. The Moderating Effect of Human Governance in Malaysia |
| title_sort | managerial overconfidence and leverage decision the moderating effect of human governance in malaysia |
| topic | T Technology (General) TA Engineering (General). Civil engineering (General) |
| url | http://umpir.ump.edu.my/id/eprint/12009/1/Managerial%20Overconfidence%20and%20Leverage%20Decision.%20The%20Moderating%20Effect%20of%20Human%20Governance%20In%20Malaysia.pdf |
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