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<p>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&amp;A (mergers and acquisitions) decisions, and also to test the relationship between directors’ vigilance and managers’ overconfidence and M&amp;A decisions, and the corresponding robustness test was carried out using the Xtprobit model. The study found that managers’ overconfidence can significantly promote M&amp;A, and board vigilance can significantly moderate the relationship between managers’ overconfidence and M&amp;A decision-making, and can inhibit M&amp;A caused by managers’ overconfidence.</p>
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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.

Research on the relationship between managerial overconfidence and M&amp;A decision-making-moderating role based on board vigilance

Applied Mathematics and Nonlinear Sciences

This work is licensed under the Creative Commons Attribution 4.0 International License.

Research on the relationship between managerial overconfidence and M&A decision-making-moderating role based on board vigilance

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...

Research on the relationship between managerial overconfidence and M&A decision-making-moderating role based on board vigilance

Published Online: Dec 12, 2022

Page range: 1043 - 1052

Received: Apr 09, 2022

Accepted: Nov 19, 2022

DOI: https://doi.org/10.2478/amns.2021.2.00322

Keywords
equity balance, manager overconfidence, M&A decision

© 2022 Zhang Quan et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Research on the relationship between managerial overconfidence and M&A decision-making-moderating role based on board vigilance

Published Online: Dec 12, 2022

Page range: 1043 - 1052

Received: Apr 09, 2022

Accepted: Nov 19, 2022

DOI: https://doi.org/10.2478/amns.2021.2.00322

Keywordsequity balance, manager overconfidence, M&A decision

© 2022 Zhang Quan et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Keywords
equity balance, manager overconfidence, M&A decision