• ISSN: 2301-3567 (Print), 2972-3981 (Online)
    • Abbreviated Title: J. Econ. Bus. Manag.
    • Frequency: Quarterly
    • DOI: 10.18178/JOEBM
    • Editor-in-Chief: Prof. Eunjin Hwang
    • Executive Editor: Ms. Fiona Chu
    • Abstracting/ Indexing:  CNKI, Google Scholar, Electronic Journals Library, Crossref, Ulrich's Periodicals Directory, MESLibrary, etc.
    • E-mail: joebm.editor@gmail.com
HOME > Archive > 2022 > Volume 10 Number 2 (Apr. 2022) >
JOEBM 2022 Vol.10(2): 104-109 ISSN: 2301-3567
DOI: 10.18178/joebm.2022.10.2.681

An Empirical Study on the Impact of CFO Overconfidence on Corporate Financial Risk: Empirical Evidence from Chinese Listed Companies

Wenrui Zhong and Weihao Yan

Abstract—Previous studies research on the impact of overconfidence, which mainly focused on the positions of CEO or the chairman of the board, while ignoring the possible impact of CFO overconfidence on enterprises. Based on the sample of Chinese A-share listed companies in Shanghai and Shenzhen stock Markets from 2008 to 2019, this paper quantifies the situation of overconfidence of senior executives from the personal characteristics of CFOs and discusses and empirically tests the influence of CFO overconfidence on corporate financial risks. The study found that an overconfident CFO significantly increases the financial risk of an enterprise, especially for the non-stated-owned corporates, and the corporates employing big four accounting institutions for auditing.

Index Terms—CFO, overconfidence, financial risk.

Wenrui Zhong and Weihao Yan are with SILC Business School, Shanghai University, 200444, Shanghai, China (e-mail: zhongwenrui@shu.edu.cn, ywh@shu.edu.cn).

[PDF]

Cite:Wenrui Zhong and Weihao Yan, "An Empirical Study on the Impact of CFO Overconfidence on Corporate Financial Risk: Empirical Evidence from Chinese Listed Companies," Journal of Economics, Business and Management vol. 10, no. 2, pp. 104-109, 2022.

Copyright © 2022 by the authors. This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).

PREVIOUS PAPER
The Impact of Peer Effects on Housing Construction in Rural China
NEXT PAPER
Based on Covid-19, Enterprise Valuation Analysis—A Case Study of Pfizer Inc.
Copyright © 2008-2024. Journal of Economics, Business and Management. All rights reserved.
E-mail: joebm.editor@gmail.com