INVESTOR-MANAGER HETEROGENEOUS BELIEFS AND CORPORATE FINANCING DECISION

摘要：

This paper considers a firm that may issue common stock or debt to undertake an investment opportunity when the investors and the manager have different estimates of the expected return from the investment. Firstly, an equilibrium model is developed to reveal the impact of investor-manager heterogeneous beliefs on corporate financing decision, and the model concludes that the greater the investors belief relative to the manager, the more likely the firm is to choose to issue equity rather than debt. Secondly, using a sample of debt and seasoned equity issues from Chinese listed firms we empirically analyze the conclusion above. We find empirical results support for the conclusion.

关键词： Investor-Manager Heterogeneous belief Financing decision

作者: Jian Ma Zhixin Liu

作者单位: School of Economic and Management, BeiHang University, Beijing, China

会议类型: 国际会议

会议名称: 13th International Conference on Enterprise Information System(第13届企业信息系统国际会议 ICEIS 2011)

会议地点: 北京

会议语种:英文

页码: 971-975

在线出版日期: 2011-06-08（万方平台首次上网日期，不代表论文的发表时间）