The Impact of Managerial Overconfidence on Capital Structure: Empirical Evidences in Vietnam

The Impact of Managerial Overconfidence on Capital Structure: Empirical Evidences in Vietnam

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This paper studies the effects of the managerial overconfidence on the corporate capital structure in the Vietnamese stock market for the period 2010 - 2016 by estimating generalized least squares (GLS) on a sample of Bath Bombs 329 non-financial firms listed on the Ho Chi Minh city Securities Exchange (HOSE).Research results show that managerial overconfidence has an impact on corporate capital structure, in DVI-D Digital Video Cable particular firms with overconfident managers have higher overall leverage and short-term liabilities, but tend to reduce long-term debt ratio.In addition, state-owned enterprises having overconfident managers experience higher long-term debt ratios than other enterprises.

Keywords: Capital Structure, Managerial Overconfidence, Non-financial listed firms, Vietnam.JEL Classifications: G41, G32DOI: https://doi.org/10.

32479/ijefi.8862.