The relationship among managerial overconfidence, ownership structure and bank operating performance

• Main Authors: Yung - Lan, Mao, 馬詠蘭
• Other Authors: Li-Ching, Chiu
• Format: Others
• Language: zh-TW
• Published: 2011
• Online Access: http://ndltd.ncl.edu.tw/handle/50020117251143056710

碩士 === 銘傳大學 === 財務金融學系碩士在職專班 === 99 === This study analyzes how managerial overconfidence and ownership structure affect operating performance of banks, with samples drawn from banks in domestic market in the period of 1996- 2005. Using panel data regression to verify the extent of the influence of managerial overconfidence, the findings conclude the following: (1) Managerial overconfidence and return on equity (ROE) of large banks have a significantly negative relationship under a confidence level of 95%, which indicates that managers are confident to believe their making decisions in the end results in banks’ losses. (2) The stockholding of directors and supervisors has a positive correlation to both return on total assets (ROA) and ROE of banks, though not significant. (3) The stockholding of managers has a U-shaped relationship with ROE of banks. Moreover, the stockholding of managers of large banks has a negative relationship with ROA. But the stockholding of managers of small banks has a reverse U-shaped relationship with ROE.