Capital Structure Choices and Behavioral Biases: An Application to a Panel of US Industrial Companies

Cilt: 7 Sayı: 4 1 Aralık 2017
  • Ridha Esghaier
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Capital Structure Choices and Behavioral Biases: An Application to a Panel of US Industrial Companies

Abstract

This paper examines the financing decision within the framework of the behavioral corporate finance. It empirically analyzes the role of psychological factors related to the managers’ overconfidence and optimism in explaining the financing choices of a panel of 160 US industrial companies listed over the period from 2009 to 2015. Our findings confirm the positive and significant impact of managers’ overconfidence and optimism on the leverage of their firms. Our tests also highlight the negative and significant impact of the market mispricing perceived by the manager on the debt level of his firm, supporting its market timing behavior. A non-less interesting final result concerns the positive impact of managers' overconfidence on their pecking order preferences, thus rejecting the theoretical hypothesis under which the managers' overconfidence leads to a reverse pecking order preference over the financing sources.

Keywords

Ayrıntılar

Birincil Dil

İngilizce

Konular

-

Bölüm

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Yazarlar

Ridha Esghaier Bu kişi benim

Yayımlanma Tarihi

1 Aralık 2017

Gönderilme Tarihi

1 Aralık 2017

Kabul Tarihi

-

Yayımlandığı Sayı

Yıl 2017 Cilt: 7 Sayı: 4

Kaynak Göster

APA
Esghaier, R. (2017). Capital Structure Choices and Behavioral Biases: An Application to a Panel of US Industrial Companies. International Journal of Economics and Financial Issues, 7(4), 608-622. https://izlik.org/JA74SS55KB
AMA
1.Esghaier R. Capital Structure Choices and Behavioral Biases: An Application to a Panel of US Industrial Companies. IJEFI. 2017;7(4):608-622. https://izlik.org/JA74SS55KB
Chicago
Esghaier, Ridha. 2017. “Capital Structure Choices and Behavioral Biases: An Application to a Panel of US Industrial Companies”. International Journal of Economics and Financial Issues 7 (4): 608-22. https://izlik.org/JA74SS55KB.
EndNote
Esghaier R (01 Aralık 2017) Capital Structure Choices and Behavioral Biases: An Application to a Panel of US Industrial Companies. International Journal of Economics and Financial Issues 7 4 608–622.
IEEE
[1]R. Esghaier, “Capital Structure Choices and Behavioral Biases: An Application to a Panel of US Industrial Companies”, IJEFI, c. 7, sy 4, ss. 608–622, Ara. 2017, [çevrimiçi]. Erişim adresi: https://izlik.org/JA74SS55KB
ISNAD
Esghaier, Ridha. “Capital Structure Choices and Behavioral Biases: An Application to a Panel of US Industrial Companies”. International Journal of Economics and Financial Issues 7/4 (01 Aralık 2017): 608-622. https://izlik.org/JA74SS55KB.
JAMA
1.Esghaier R. Capital Structure Choices and Behavioral Biases: An Application to a Panel of US Industrial Companies. IJEFI. 2017;7:608–622.
MLA
Esghaier, Ridha. “Capital Structure Choices and Behavioral Biases: An Application to a Panel of US Industrial Companies”. International Journal of Economics and Financial Issues, c. 7, sy 4, Aralık 2017, ss. 608-22, https://izlik.org/JA74SS55KB.
Vancouver
1.Ridha Esghaier. Capital Structure Choices and Behavioral Biases: An Application to a Panel of US Industrial Companies. IJEFI [Internet]. 01 Aralık 2017;7(4):608-22. Erişim adresi: https://izlik.org/JA74SS55KB