Top Management Team Characteristics, Overconfidence, and Financial Asset Allocation
The large-scale allocation of financial assets by enterprises indicates economic financialization at the micro-level. Scholars have extensively discussed its influencing factors, but most are based on the traditional assumption of “rational people.” The annual data of listed companies in China fo...
Saved in:
| Main Author: | |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Editura ASE
2022-08-01
|
| Series: | Amfiteatru Economic |
| Subjects: | |
| Online Access: | https://www.amfiteatrueconomic.ro/temp/Article_3141.pdf |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1850209051490648064 |
|---|---|
| author | Rangkun Qi |
| author_facet | Rangkun Qi |
| author_sort | Rangkun Qi |
| collection | DOAJ |
| description | The large-scale allocation of financial assets by enterprises indicates economic
financialization at the micro-level. Scholars have extensively discussed its influencing
factors, but most are based on the traditional assumption of “rational people.” The annual
data of listed companies in China for the period 2008 to 2020 was used to explore how the
characteristics of the top management team (TMT) affect a company’s financial asset
allocation, considering that “people are imperfectly rational and heterogeneous” as a research
perspective. The mediating effect and the influence of overconfidence on TMT’s
characteristics affecting financial asset allocation were analyzed through a mediation model,
a two-way fixed effects model, and the Logit method. Results reveal that TMT’s
characteristics, such as gender, age, tenure, education, finance, and overseas experience, have
a differentiated influence on financial asset allocation. The transmission mechanism of
overconfidence in this process is more complicated, with a partial mediating effect and a
suppressing effect. Conclusions provide managerial implications for the government,
companies, and executives in carrying out collaborative operations and jointly promoting the
financial services for the entity.
|
| format | Article |
| id | doaj-art-97e7e5ee218a4e8baa47afa95cee73e4 |
| institution | OA Journals |
| issn | 1582-9146 2247-9104 |
| language | English |
| publishDate | 2022-08-01 |
| publisher | Editura ASE |
| record_format | Article |
| series | Amfiteatru Economic |
| spelling | doaj-art-97e7e5ee218a4e8baa47afa95cee73e42025-08-20T02:10:07ZengEditura ASEAmfiteatru Economic1582-91462247-91042022-08-01246175978110.24818/EA/2022/61/759Top Management Team Characteristics, Overconfidence, and Financial Asset AllocationRangkun Qi0https://orcid.org/0000-0001-9048-4739Research Center of the Economic and Social Development of Henan East Provincial Joint, ChinaThe large-scale allocation of financial assets by enterprises indicates economic financialization at the micro-level. Scholars have extensively discussed its influencing factors, but most are based on the traditional assumption of “rational people.” The annual data of listed companies in China for the period 2008 to 2020 was used to explore how the characteristics of the top management team (TMT) affect a company’s financial asset allocation, considering that “people are imperfectly rational and heterogeneous” as a research perspective. The mediating effect and the influence of overconfidence on TMT’s characteristics affecting financial asset allocation were analyzed through a mediation model, a two-way fixed effects model, and the Logit method. Results reveal that TMT’s characteristics, such as gender, age, tenure, education, finance, and overseas experience, have a differentiated influence on financial asset allocation. The transmission mechanism of overconfidence in this process is more complicated, with a partial mediating effect and a suppressing effect. Conclusions provide managerial implications for the government, companies, and executives in carrying out collaborative operations and jointly promoting the financial services for the entity. https://www.amfiteatrueconomic.ro/temp/Article_3141.pdftop management teamoverconfidencefinancial assets |
| spellingShingle | Rangkun Qi Top Management Team Characteristics, Overconfidence, and Financial Asset Allocation Amfiteatru Economic top management team overconfidence financial assets |
| title | Top Management Team Characteristics, Overconfidence, and Financial Asset Allocation |
| title_full | Top Management Team Characteristics, Overconfidence, and Financial Asset Allocation |
| title_fullStr | Top Management Team Characteristics, Overconfidence, and Financial Asset Allocation |
| title_full_unstemmed | Top Management Team Characteristics, Overconfidence, and Financial Asset Allocation |
| title_short | Top Management Team Characteristics, Overconfidence, and Financial Asset Allocation |
| title_sort | top management team characteristics overconfidence and financial asset allocation |
| topic | top management team overconfidence financial assets |
| url | https://www.amfiteatrueconomic.ro/temp/Article_3141.pdf |
| work_keys_str_mv | AT rangkunqi topmanagementteamcharacteristicsoverconfidenceandfinancialassetallocation |