Corporate Financial Policies Research Based Upon ManagerialOverconfidence: A Review Also Discussing Challenges Against Traditional Corporate Finance Theories

摘要

As the rising of Behavioral Corporate Finance theory, gradually, Scholars tend to replace the traditional rationality assumption with potentially more realistic behavioral assumptions such as managerial overconfidence to explain the decision makings of corporate financial policies; as a result, the research of corporate financial policies based on managerial overconfidence is becoming an important subject in this field. This paper, in regard to managerial overconfidence, summarizes a variety of financial policy making researches within corporate investments, financing, dividend payout and their challenges against traditional corporate financial theories. Ultimately, it sums up the insufficiency of the existing research and presents a prospective for future study of this field as well.