Impacts of Internal Financing on Investment Decisions by Optimistic and Overconfident Managers
研究了乐观和过度自信的管理者在内部融资影响下如何做出投资决策，发现内部资金水平不同时，投资阈值可能高于或低于企业价值最大化阈值，并推导出最优内部资金水平。
Abstract The paper examines the interactions of investment decisions by managers who display optimistic and overconfident biases on the prospects of firm growth and riskiness with internal financing. The model demonstrates that the investment threshold for optimistic and overconfident managers can both rise above and fall below the threshold to maximize the market value of the firm, depending on the level of internal funds. It also derives the optimal level of internal funds that induces the managers to maximize the market value of the firm and illustrates the impacts of managerial optimism and overconfidence.