OVERCONFIDENCE AND FIRM VALUE
Main Article Content
Abstract
Managerial overconfidence is an interesting topic to study.
Overconfidence can be caused by the success of a company leader. Overconfidence
affects the managerial actions and strategic policies taken by companies, especially in
investment. This study aims to examine the effect of overconfidence calculated by
using capital expenditure and investment opportunity set calculated by using Market
Book Value Equity (MBVE) on firm value calculated by Tobin’sQ with capital
structure as an intervening variable calculated by Debt to EquityRatio (DER). 232 open
manufacturing industries in Indonesia and 120 open manufacturing companies in
Malaysia in the period of 2016-2019 were taken as the samples by using purposive
sampling technique. In this study, the data were analyzed by using Eviews 10. This
study confirms that there is an effect of overconfidence on firm value intervened by the
capital structure in open manufacturing industries in Indonesia and Malaysia.
Meanwhile, the capital structure variable cannot intervene in the investment
opportunity set variable onthe firm value in open manufacturing industries in Indonesia
and Malaysia.
Downloads
Metrics
Article Details
Licensing
TURCOMAT publishes articles under the Creative Commons Attribution 4.0 International License (CC BY 4.0). This licensing allows for any use of the work, provided the original author(s) and source are credited, thereby facilitating the free exchange and use of research for the advancement of knowledge.
Detailed Licensing Terms
Attribution (BY): Users must give appropriate credit, provide a link to the license, and indicate if changes were made. Users may do so in any reasonable manner, but not in any way that suggests the licensor endorses them or their use.
No Additional Restrictions: Users may not apply legal terms or technological measures that legally restrict others from doing anything the license permits.
