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Impact of managerial overconfidence and government intervention on firm leverage decision: A MARS model approach

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dc.citedby1
dc.contributor.authorTing I.W.K.en_US
dc.contributor.authorLean H.H.en_US
dc.contributor.authorKweh Q.L.en_US
dc.contributor.authorAzizan N.A.en_US
dc.contributor.authorid57211409300en_US
dc.contributor.authorid15849147600en_US
dc.contributor.authorid55661469500en_US
dc.contributor.authorid55214819000en_US
dc.date.accessioned2023-05-29T06:13:41Z
dc.date.available2023-05-29T06:13:41Z
dc.date.issued2016
dc.description.abstractThis paper investigates the impact of managerial overconfidence and government intervention on a firm�s leverage decision. The Motivation, Ability, Roles and Situation Factors (MARS) model is employed to examine its impact on leverage decision. Dynamic panel models are applied to examine the relationship between managerial overconfidence, government intervention and leverage decision of publicly listed companies in Malaysia for the period 2004-2013. The findings are as follows. (1) When CEOs are motivated, their overconfidence is significantly and positively related to debt; (2) The CEOs� ability is significantly and positively related to leverage decision; (3) The CEOs� role is significantly and negatively related to leverage decision. (4) Government ownership moderates the relationship between managerial overconfidence and firm leverage decision. (5) Malaysian public listed firms adjust debt towards an optimal level and the speed of adjustment is approximately 21% to 26% per annum. The findings also pave the way for further study of antecedent conditions in predicting the extent of firm leverage decision from the behavioural perspective. � 2016, Faculty of Economics and Administration. All rights reserved.en_US
dc.description.natureFinalen_US
dc.identifier.epage104
dc.identifier.issue3
dc.identifier.scopus2-s2.0-84978424071
dc.identifier.spage85
dc.identifier.urihttps://www.scopus.com/inward/record.uri?eid=2-s2.0-84978424071&partnerID=40&md5=d2e4a7e2902a40f3031f3e6d65b2814e
dc.identifier.urihttps://irepository.uniten.edu.my/handle/123456789/22956
dc.identifier.volume8
dc.publisherFaculty of Economics and Administrationen_US
dc.sourceScopus
dc.sourcetitleInstitutions and Economies
dc.titleImpact of managerial overconfidence and government intervention on firm leverage decision: A MARS model approachen_US
dc.typeArticleen_US
dspace.entity.typePublication
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