IDEAS home Printed from https://ideas.repec.org/a/aes/amfeco/v24y2022i61p759.html
   My bibliography  Save this article

Top Management Team Characteristics, Overconfidence, and Financial Asset Allocation

Author

Listed:
  • Rangkun Qi

    (Research Center of the Economic and Social Development)

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.

Suggested Citation

  • Rangkun Qi, 2022. "Top Management Team Characteristics, Overconfidence, and Financial Asset Allocation," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 24(61), pages 759-759, August.
    • Handle: RePEc:aes:amfeco:v:24:y:2022:i:61:p:759
    as

    Download full text from publisher

    File URL: http://www.amfiteatrueconomic.ro/temp/Article_3141.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Amason, Allen C. & Shrader, Rodney C. & Tompson, George H., 2006. "Newness and novelty: Relating top management team composition to new venture performance," Journal of Business Venturing, Elsevier, vol. 21(1), pages 125-148, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Liu, Shuangshuang, 2024. "The influence of financial asset allocation on the innovation and investment of high-tech enterprises," Finance Research Letters, Elsevier, vol. 62(PA).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Oe, Akitsu & Mitsuhashi, Hitoshi, 2013. "Founders' experiences for startups' fast break-even," Journal of Business Research, Elsevier, vol. 66(11), pages 2193-2201.
    2. Birton J Cowden & Jintong Tang, 2017. "Gender Differences And Entrepreneurial Munificence: The Pursuit Of Innovative New Ventures," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 22(01), pages 1-13, March.
    3. Alex Coad & Sara Amoroso & Nicola Grassano, 2017. "Diversity in one dimension alongside greater similarity in others: evidence from FP7 cooperative research teams," The Journal of Technology Transfer, Springer, vol. 42(5), pages 1170-1183, October.
    4. Frederiks, Arjan J. & Englis, Basil G. & Ehrenhard, Michel L. & Groen, Aard J., 2019. "Entrepreneurial cognition and the quality of new venture ideas: An experimental approach to comparing future-oriented cognitive processes," Journal of Business Venturing, Elsevier, vol. 34(2), pages 327-347.
    5. Juan Pablo Diánez-González & Carmen Camelo-Ordaz, 2016. "How management team composition affects academic spin-offs’ entrepreneurial orientation: the mediating role of conflict," The Journal of Technology Transfer, Springer, vol. 41(3), pages 530-557, June.
    6. Dahlqvist, Jonas & Wiklund, Johan, 2012. "Measuring the market newness of new ventures," Journal of Business Venturing, Elsevier, vol. 27(2), pages 185-196.
    7. Browder, Russell E. & Aldrich, Howard E. & Bradley, Steven W., 2019. "The emergence of the maker movement: Implications for entrepreneurship research," Journal of Business Venturing, Elsevier, vol. 34(3), pages 459-476.
    8. Tobias Kollmann & Christoph Stöckmann & Yvonne Meves & Julia M. Kensbock, 2017. "When members of entrepreneurial teams differ: linking diversity in individual-level entrepreneurial orientation to team performance," Small Business Economics, Springer, vol. 48(4), pages 843-859, April.
    9. Gilbert, Brett Anitra & McDougall, Patricia P. & Audretsch, David B., 2008. "Clusters, knowledge spillovers and new venture performance: An empirical examination," Journal of Business Venturing, Elsevier, vol. 23(4), pages 405-422, July.
    10. Sabyasachi Sinha, 2015. "The Exploration–Exploitation Dilemma: A Review in the Context of Managing Growth of New Ventures," Vikalpa: The Journal for Decision Makers, , vol. 40(3), pages 313-323, September.
    11. Pilar Bernal & Juan P. Maicas & Pilar Vargas, 2016. "Exploration, exploitation and innovation performance: Disentangling environmental dynamism," Documentos de Trabajo dt2016-03, Facultad de Ciencias Económicas y Empresariales, Universidad de Zaragoza.
    12. Yingna Wu & Liang Ding & Xuan Song & Jun Chen, 2023. "Top Management Team Heterogeneity and the Performance of Cross-Border M&A," SAGE Open, , vol. 13(2), pages 21582440231, June.
    13. Anastasiia Laskovaia & Galina Shirokova & Michael H. Morris, 2017. "National culture, effectuation, and new venture performance: global evidence from student entrepreneurs," Small Business Economics, Springer, vol. 49(3), pages 687-709, October.
    14. Ye Dai & Gukdo Byun & Fangsheng Ding, 2019. "The Direct and Indirect Impact of Gender Diversity in New Venture Teams on Innovation Performance," Entrepreneurship Theory and Practice, , vol. 43(3), pages 505-528, May.
    15. Liu, Zhen & Kemp, Ron G.M. & Jongsma, Maarten A. & Huang, Caicheng & Dons, J.J.M. & Omta, S.W.F, 2014. "Key Success Factors of Innovation Projects of Vegetable Breeding Companies in China," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 17(4), pages 1-28, November.
    16. Tan, Justin & Shao, Yunfei & Li, Wan, 2013. "To be different, or to be the same? An exploratory study of isomorphism in the cluster," Journal of Business Venturing, Elsevier, vol. 28(1), pages 83-97.
    17. Charles E. Eesley & David H. Hsu & Edward B. Roberts, 2014. "The contingent effects of top management teams on venture performance: Aligning founding team composition with innovation strategy and commercialization environment," Strategic Management Journal, Wiley Blackwell, vol. 35(12), pages 1798-1817, December.
    18. Lin, Ya-Hui & Chen, Chung-Jen & Lin, Bou-Wen, 2018. "The dual-edged role of returnee board members in new venture performance," Journal of Business Research, Elsevier, vol. 90(C), pages 347-358.
    19. JoAnne Yong–Kwan Lim & Lowell W. Busenitz & Laku Chidambaram, 2013. "New Venture Teams and the Quality of Business Opportunities Identified: Faultlines between Subgroups of Founders and Investors," Entrepreneurship Theory and Practice, , vol. 37(1), pages 47-67, January.
    20. Sander Hoogendoorn & Simon C. Parker & Mirjam van Praag, 2017. "Smart or Diverse Start-up Teams? Evidence from a Field Experiment," Organization Science, INFORMS, vol. 28(6), pages 1010-1028, December.

    More about this item

    Keywords

    top management team; overconfidence; financial assets;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets
    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aes:amfeco:v:24:y:2022:i:61:p:759. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Valentin Dumitru (email available below). General contact details of provider: https://edirc.repec.org/data/aseeero.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.