Top Management Team Characteristics, Overconfidence, and Financial Asset Allocation

Rangkun Qi ()
Additional contact information
Rangkun Qi: Research Center of the Economic and Social Development

The AMFITEATRU ECONOMIC journal, 2022, vol. 24, issue 61, 759

Abstract: The large-scale allocation of financial assets by enterprises indicates economic financialization at the micro-level. Scholars have extensively discussed its influencing factors, but most are based on the traditional assumption of “rational people.” The annual data of listed companies in China for the period 2008 to 2020 was used to explore how the characteristics of the top management team (TMT) affect a company’s financial asset allocation, considering that “people are imperfectly rational and heterogeneous” as a research perspective. The mediating effect and the influence of overconfidence on TMT’s characteristics affecting financial asset allocation were analyzed through a mediation model, a two-way fixed effects model, and the Logit method. Results reveal that TMT’s characteristics, such as gender, age, tenure, education, finance, and overseas experience, have a differentiated influence on financial asset allocation. The transmission mechanism of overconfidence in this process is more complicated, with a partial mediating effect and a suppressing effect. Conclusions provide managerial implications for the government, companies, and executives in carrying out collaborative operations and jointly promoting the financial services for the entity.

Keywords: top management team; overconfidence; financial assets (search for similar items in EconPapers)
JEL-codes: D22 G41 M12 M21 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.amfiteatrueconomic.ro/temp/Article_3141.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aes:amfeco:v:24:y:2022:i:61:p:759

Access Statistics for this article

More articles in The AMFITEATRU ECONOMIC journal from Academy of Economic Studies - Bucharest, Romania Contact information at EDIRC.
Bibliographic data for series maintained by Valentin Dumitru ().