HUBUNGAN MANAGERIAL OVERCONFIDENCE, KEPEMILIKAN PEMERINTAH DAN KEPUTUSAN PEMBIAYAAN PERUSAHAAN

Abstract

This study examines the effect of managerial overconfidence on corporate financing which measured by leverage ratio. Also it investigates the moderating effect of government ownership on the relationship between managerial overconfidence and leverage. The managerial overconfidence is measured by photo profile, degree of education, experience, gender and network. The sample consists of 176 public companies listed on Indonesia Stock Exchange in 2017. The results of this study show that managerial overconfidence proxied by photo profile has a negatively effect on leverage. Other results find that experience and network positively affect on leverage. However, this study failed to show that level of education, gender, government ownership have significant effect on leverage. In addition, government ownership does not act as a moderating variable that influence the relationship between managerial overconfidence and leverage. The implications of this study suggest that the personal characteristics of manager such as profile, experience and network should be considered as factors that may influence level of corporate financing.

Keywords

• managerial overconfidence
• government ownership
• financing
• leverage
• upper echelon theory