Article
Research on the relationship between managerial overconfidence and M&A decision-making-moderating role based on board vigilance
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Abstract
This paper uses the A-share data of listed companies listed on the Shanghai and Shenzhen stock exchanges from 2012 to 2016 and uses the Xtlogit model to test the relationship between managers’ overconfidence and M&A (mergers and acquisitions) decisions, and also to test the relationship between directors’ vigilance and managers’ overconfidence and M&A decisions, and the corresponding robustness test was carried out using the Xtprobit model. The study found that managers’ overconfidence can significantly promote M&A, and board vigilance can significantly moderate the relationship between managers’ overconfidence and M&A decision-making, and can inhibit M&A caused by managers’ overconfidence.
Keywords
equity balance, manager overconfidence, M&A decision
Citation
Zhang, Q. & Wang, Z. (2022). Research on the relationship between managerial overconfidence and M&A decision-making-moderating role based on board vigilance. Applied Mathematics and Nonlinear Sciences, 7(2), 1043–1052. https://doi.org/10.2478/amns.2021.2.00322
Q. Zhang and Z. Wang, “Research on the relationship between managerial overconfidence and M&A decision-making-moderating role based on board vigilance,” Applied Mathematics and Nonlinear Sciences, vol. 7, no. 2, pp. 1043–1052, 2022, doi: 10.2478/amns.2021.2.00322.
Zhang Q, Wang Z. Research on the relationship between managerial overconfidence and M&A decision-making-moderating role based on board vigilance. Applied Mathematics and Nonlinear Sciences. 2022;7(2):1043–1052. doi:10.2478/amns.2021.2.00322.
Zhang, Q. and Wang, Z. (2022), ‘Research on the relationship between managerial overconfidence and M&A decision-making-moderating role based on board vigilance’, Applied Mathematics and Nonlinear Sciences, 7(2), pp. 1043–1052. Available at: https://doi.org/10.2478/amns.2021.2.00322.
Zhang, Quan, and Zhentao Wang. “Research on the Relationship Between Managerial Overconfidence and M&A Decision-making-moderating Role Based on Board Vigilance.” Applied Mathematics and Nonlinear Sciences, vol. 7, no. 2, 2022, pp. 1043–1052. https://doi.org/10.2478/amns.2021.2.00322.
Zhang, Quan, and Zhentao Wang. “Research on the Relationship Between Managerial Overconfidence and M&A Decision-making-moderating Role Based on Board Vigilance.” Applied Mathematics and Nonlinear Sciences 7, no. 2 (2022): 1043–1052. https://doi.org/10.2478/amns.2021.2.00322.
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Published by: Engineering Journals
