The Influence of Fair Value Measurement on Radical Financing of Irrational Managers Based on Fixed Effects Model and Fisher Permutation Test

Complexity

article

Wei Wang¹  Xiao-hui Qu²  Jian-Ju Du⁴  Jia-Ming Zhu⁵ 

[1] Institute of Financial and Accounting Studies, Xiamen University;Center for Accouting Studies of Xiamen University;School of Economics and Management, Harbin Institute of Technology;School of Accounting, Anhui University of Finance and Economics;School of Statistics and Applied Mathematics, Anhui University of Finance and Economics

DOI  :  10.1155/2021/5513204

学科分类：心脏病和心血管学

来源: Hindawi Publishing Corporation

【 摘 要 】

Adopting fair value measurement may bring more earnings fluctuations and induce irrational psychology and radical financing behavior of managers. Based on behavioral corporate governance theory, using the sample of Chinese A-share nonfinancial listed companies during 2007–2017, this paper empirically examines the regulatory effect of fair value measurement, that is, whether fair value measurement affects the company's financing decisions when managers have irrational psychological characteristics, i.e., overconfidence. The study found that overconfident managers of the company that have fair value measurement assets will be more aggressive for debt decisions, indicating that fair value measurement has a positively regulatory effect on overconfident managers.

【 授权许可】

CC BY