Analysis of the impact of managers' psychological deviation on information disclosure and irrational overseas investment after IFRS convergence
Based on a sample of 6485 firms listed on the Chinese Shanghai and Shenzhen A-shares between 2017 and 2021, the effect of managers' psychological deviation on irrational investment is empirically tested. The higher the managers’ confidence, the lower the investment efficiency. The level of irra...
| Main Authors: | , , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Elsevier
2024
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| Online Access: | http://psasir.upm.edu.my/id/eprint/113325/1/113325.pdf |
| _version_ | 1825940297319710720 |
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| author | Zhong, Bin Soh, Wei Ni Ong, Tze San Muhamad, Haslinah He, ChunXi |
| author_facet | Zhong, Bin Soh, Wei Ni Ong, Tze San Muhamad, Haslinah He, ChunXi |
| author_sort | Zhong, Bin |
| collection | UPM |
| description | Based on a sample of 6485 firms listed on the Chinese Shanghai and Shenzhen A-shares between 2017 and 2021, the effect of managers' psychological deviation on irrational investment is empirically tested. The higher the managers’ confidence, the lower the investment efficiency. The level of irrational investment in listed companies increases with the degree of managers’ risk appetite. The improvement of disclosure quality of enterprises after IFRS convergence in China can weaken irrational investment triggered by managers' overconfidence. The information disclosure quality by companies can manage the irrational investment behavior that is exacerbated by the high degree of managers’ risk appetite. |
| first_indexed | 2024-12-09T02:25:50Z |
| format | Article |
| id | upm.eprints-113325 |
| institution | Universiti Putra Malaysia |
| language | English |
| last_indexed | 2024-12-09T02:25:50Z |
| publishDate | 2024 |
| publisher | Elsevier |
| record_format | dspace |
| spelling | upm.eprints-1133252024-11-18T08:00:31Z http://psasir.upm.edu.my/id/eprint/113325/ Analysis of the impact of managers' psychological deviation on information disclosure and irrational overseas investment after IFRS convergence Zhong, Bin Soh, Wei Ni Ong, Tze San Muhamad, Haslinah He, ChunXi Based on a sample of 6485 firms listed on the Chinese Shanghai and Shenzhen A-shares between 2017 and 2021, the effect of managers' psychological deviation on irrational investment is empirically tested. The higher the managers’ confidence, the lower the investment efficiency. The level of irrational investment in listed companies increases with the degree of managers’ risk appetite. The improvement of disclosure quality of enterprises after IFRS convergence in China can weaken irrational investment triggered by managers' overconfidence. The information disclosure quality by companies can manage the irrational investment behavior that is exacerbated by the high degree of managers’ risk appetite. Elsevier 2024 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/113325/1/113325.pdf Zhong, Bin and Soh, Wei Ni and Ong, Tze San and Muhamad, Haslinah and He, ChunXi (2024) Analysis of the impact of managers' psychological deviation on information disclosure and irrational overseas investment after IFRS convergence. Finance Research Letters, 64. art. no. 105446. pp. 1-8. ISSN 1544-6123 https://www.sciencedirect.com/science/article/pii/S1544612324004768 10.1016/j.frl.2024.105446 |
| spellingShingle | Zhong, Bin Soh, Wei Ni Ong, Tze San Muhamad, Haslinah He, ChunXi Analysis of the impact of managers' psychological deviation on information disclosure and irrational overseas investment after IFRS convergence |
| title | Analysis of the impact of managers' psychological deviation on information disclosure and irrational overseas investment after IFRS convergence |
| title_full | Analysis of the impact of managers' psychological deviation on information disclosure and irrational overseas investment after IFRS convergence |
| title_fullStr | Analysis of the impact of managers' psychological deviation on information disclosure and irrational overseas investment after IFRS convergence |
| title_full_unstemmed | Analysis of the impact of managers' psychological deviation on information disclosure and irrational overseas investment after IFRS convergence |
| title_short | Analysis of the impact of managers' psychological deviation on information disclosure and irrational overseas investment after IFRS convergence |
| title_sort | analysis of the impact of managers psychological deviation on information disclosure and irrational overseas investment after ifrs convergence |
| url | http://psasir.upm.edu.my/id/eprint/113325/1/113325.pdf |
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