The Effect Of Managerial Overconfidence On Corporate Financing Decision

Siswoyo, Eujenita and Mahadwartha, Putu Anom and Sutejo, Bertha Silvia (2015) The Effect Of Managerial Overconfidence On Corporate Financing Decision. Manajemen & Bisnis (MABIS), 14 (2). pp. 196-210. ISSN 1412-3789; e-ISSN 2477-1783

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Abstract

The objective of this research is to examine the effect of managerial overconfidence on corporate financing decision of the miscellaneous industry sector in Indonesian Stock Exchange for the period of 2011-2015. This research uses quantitative perspective with linier regression in a panel data for all of the research’s observation. Fixed effect models (FEM) is employed to examine the effect of managerial overconfidence on corporate financing decision. CEO personal characteristics such as profile photo, education, experience, gender, tenure, and age are used as the proxy of managerial overconfidence. The result of this research indicate that: first, CEO overconfidence has positive significant effect on corporate financing decision; second, CEO profile photo has negative significant effect on leverage; third, CEO education has no significant effect on leverage; fourth, CEO experience has positive significant effect on leverage; fifth, male CEO tend to use more debt than female CEO which means gender has positive significant effect on leverage; sixth, CEO tenure has positive significant effect on leverage; seventh CEO age has negative significant effect on leverage. Penelitian ini bertujuan untuk mengetahui pengaruh managerial over confidence terhadap keputusan pendanaan perusahaan pada sector aneka industri di Bursa Efek Indonesia periode 2011-2015. Penelitian ini menggunakan pendekatan regresi linier dalam bentuk data panel untuk keseluruhan data observasi. Model fixed effect (FEM) digunakan untuk menguji pengaruh managerial over confidence terhadap keputusan pendanaan perusahaan. Karakteristik pribadi CEO seperti foto profil, pendidikan, pengalaman, jenis kelamin, tenure, dan usia digunakan sebagai proxy dari managerial overconfidence. Hasil dari penelitian ini menunjukkan: pertama, managerial over confidence memiliki pengaruh positif terhadap keputusan pendanaan perusahaan; kedua, foto profil CEO memiliki pengaruh negative signifikan terhadap leverage; ketiga, pendidikan CEO tidak memiliki pengaruh terhadap leverage; keempat, pengalaman CEO memiliki pengaruh positif signifikan terhadap leverage; kelima, CEO pria akan lebih banyak menggunakan utang daripada CEO wanita, artinya jenis kelamin memiliki pengaruh positif signifikan terhadap leverage; keenam, tenure CEO memiliki pengaruh positif signifikan terhadap leverage; ketujuh, usia CEO memiliki pengaruh negative terhadap leverage.

Item Type:	Article
Uncontrolled Keywords:	Managerial overconfidence; Corporate financing decision; CEO personal characteristics; Leverage
Subjects:	H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Divisions:	Faculty of Business and Economic > Department of Management
Depositing User:	Ester Sri W. 196039
Date Deposited:	31 Oct 2022 09:00
Last Modified:	31 Oct 2022 09:00
URI:	http://repository.ubaya.ac.id/id/eprint/42822

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