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

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

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 empiricall...

Full description

Bibliographic Details
Main Authors: Wei Wang, Xiao-hui Qu, Jian-Ju Du, Jia-Ming Zhu
Format: Article
Language:English
Published: Hindawi-Wiley 2021-01-01
Series:Complexity
Online Access:http://dx.doi.org/10.1155/2021/5513204
id doaj-ed373d820a9e4ca98e7e7389a78b7322
record_format Article
spelling doaj-ed373d820a9e4ca98e7e7389a78b73222021-03-08T02:01:08ZengHindawi-WileyComplexity1099-05262021-01-01202110.1155/2021/5513204The Influence of Fair Value Measurement on Radical Financing of Irrational Managers Based on Fixed Effects Model and Fisher Permutation TestWei Wang0Xiao-hui Qu1Jian-Ju Du2Jia-Ming Zhu3Institute of Financial and Accounting StudiesCenter for Accouting Studies of Xiamen UniversitySchool of AccountingSchool of Statistics and Applied MathematicsAdopting 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.http://dx.doi.org/10.1155/2021/5513204
collection DOAJ
language English
format Article
sources DOAJ
author Wei Wang
Xiao-hui Qu
Jian-Ju Du
Jia-Ming Zhu
spellingShingle Wei Wang
Xiao-hui Qu
Jian-Ju Du
Jia-Ming Zhu
The Influence of Fair Value Measurement on Radical Financing of Irrational Managers Based on Fixed Effects Model and Fisher Permutation Test
Complexity
author_facet Wei Wang
Xiao-hui Qu
Jian-Ju Du
Jia-Ming Zhu
author_sort Wei Wang
title The Influence of Fair Value Measurement on Radical Financing of Irrational Managers Based on Fixed Effects Model and Fisher Permutation Test
title_short The Influence of Fair Value Measurement on Radical Financing of Irrational Managers Based on Fixed Effects Model and Fisher Permutation Test
title_full The Influence of Fair Value Measurement on Radical Financing of Irrational Managers Based on Fixed Effects Model and Fisher Permutation Test
title_fullStr The Influence of Fair Value Measurement on Radical Financing of Irrational Managers Based on Fixed Effects Model and Fisher Permutation Test
title_full_unstemmed The Influence of Fair Value Measurement on Radical Financing of Irrational Managers Based on Fixed Effects Model and Fisher Permutation Test
title_sort influence of fair value measurement on radical financing of irrational managers based on fixed effects model and fisher permutation test
publisher Hindawi-Wiley
series Complexity
issn 1099-0526
publishDate 2021-01-01
description 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.
url http://dx.doi.org/10.1155/2021/5513204
work_keys_str_mv AT weiwang theinfluenceoffairvaluemeasurementonradicalfinancingofirrationalmanagersbasedonfixedeffectsmodelandfisherpermutationtest
AT xiaohuiqu theinfluenceoffairvaluemeasurementonradicalfinancingofirrationalmanagersbasedonfixedeffectsmodelandfisherpermutationtest
AT jianjudu theinfluenceoffairvaluemeasurementonradicalfinancingofirrationalmanagersbasedonfixedeffectsmodelandfisherpermutationtest
AT jiamingzhu theinfluenceoffairvaluemeasurementonradicalfinancingofirrationalmanagersbasedonfixedeffectsmodelandfisherpermutationtest
AT weiwang influenceoffairvaluemeasurementonradicalfinancingofirrationalmanagersbasedonfixedeffectsmodelandfisherpermutationtest
AT xiaohuiqu influenceoffairvaluemeasurementonradicalfinancingofirrationalmanagersbasedonfixedeffectsmodelandfisherpermutationtest
AT jianjudu influenceoffairvaluemeasurementonradicalfinancingofirrationalmanagersbasedonfixedeffectsmodelandfisherpermutationtest
AT jiamingzhu influenceoffairvaluemeasurementonradicalfinancingofirrationalmanagersbasedonfixedeffectsmodelandfisherpermutationtest
_version_ 1714797314432827392

Similar Items