Entrepreneurial overconfidence and SME financing decisions
研究了企业家自信程度对中小企业外部融资决策和结果的影响，发现适度过度自信的企业家比不自信和极度过度自信者更难获得贷款。
This study examines the effect of entrepreneurial under- and overconfidence on small and medium-sized enterprises’ (SMEs) external financing decisions and outcomes. In addition to the conventional wisdom that overconfidence leads to suboptimal financing decisions and higher financing costs, we contend that moderate overconfidence induces entrepreneurs to commit costly efforts, which is seen as a favorable signal by financiers. We test this trade-off hypothesis using a large sample of UK SMEs and a novel measure of overconfidence. We find significant nonlinear relationships between overconfidence and alternative measures of financial demand and supply. Specifically, we show that mildly overconfident entrepreneurs are less likely to receive the loans applied for than both unconfident and extremely overconfident ones.