Managerial Traits and Capital Structure Decisions
Open accessAbstract
This article incorporates well-documented managerial traits into a tradeoff model of capital structure to study their impact on corporate financial policy and firm value. Optimistic and/or overconfident managers choose higher debt levels and issue new debt more often but need not follow a pecking order. The model also surprisingly uncovers that these managerial traits can play a positive role. Biased managers' higher debt levels restrain them from diverting funds, which increases firm value by reducing this manager-shareholder conflict. Although higher debt levels delay investment, mildly biased managers' investment decisions can increase firm value by reducing this bondholder-shareholder conflict.
Integrity signals
Registry
Cites
Statistics
Claims the paper makes
Claims other papers make about this one
Each is checked against this paper’s own text: does it say what the citing paper says it does?
Managerial traits, such as risk perception, are important criteria for investment decisions.
“Hackbarth (2008) stated, ''the managerial traits, such as other important traits including risk perception, are important criteria for investment decisions.''”
From Unveiling the impact of managerial traits on investor decision prediction: ANFIS approach (2023) · cites this paper as Hackbarth (2008)
Investment decisions are influenced by various factors, including personal characteristics and managerial issues.
“Investment decisions are influenced by various factors, including personal characteristics and managerial issues.”
From Unveiling the impact of managerial traits on investor decision prediction: ANFIS approach (2023) · cites this paper as Hackbarth (2008)
Cites
Corporate financing and investment decisions when firms have information that investors do not have
Myers, S. C., & Majluf, N. S. (1984) · Journal of Financial Economics · doi:10.1016/0304-405x(84)90023-0 · Cited by 18,957 · see citing works
Flagged first, then by citations
Cited by
Sorted by citations
Unveiling the impact of managerial traits on investor decision prediction: ANFIS approach
Asemi, A., Asemi, A., & Ko, A. (2023) · Soft Computing · doi:10.1007/s00500-023-08102-2 · Cited by 14 · see citing works
- Authors
- Hackbarth, D.
- Venue
- Journal of Financial and Quantitative Analysis
- Publisher
- Cambridge University Press (CUP)
- Published
- 2008-12
- Volume
- 43
- Issue
- 4
- Pages
- 843-881
- ISSN
- 0022-1090 (ISSN-L)
- 1756-6916
- OpenAlex
- W3124457260
- Cited by
- 540
- References
- 1
- Citations by year
- 2026: 23 · 2025: 28 · 2024: 30 · 2023: 31 · 2022: 41 · 2021: 46 · 2020: 35 · 2019: 30 · 2018: 30 · 2017: 27 · 2016: 30 · 2015: 27 · 2014: 34 · 2013: 27 · 2012: 20
- FWCI
- 77.21
- Type
- journal article
- Language
- en
- Open access
- green
- doi.org
- Locations
- Journal of Financial and Quantitative Analysis (publishedVersion)
- SSRN Electronic Journal (acceptedVersion)
- RePEc: Research Papers in Economics (submittedVersion)
- Topics
- Social Sciences › Business, Management and Accounting › Accounting › Corporate Finance and Governance
- Social Sciences › Business, Management and Accounting › Accounting › Financial Analysis and Corporate Governance
- Social Sciences › Business, Management and Accounting › Accounting › Corporate Insolvency and Governance
- Keywords
- managerial characteristics, capital structure, trade-off theory, overconfidence, optimism, managerial bias, debt financing, pecking order, firm value, shareholder-manager conflict, investment timing, corporate financial policy
About these checks
Registry, retraction, Cites and statistics results are computed, not judged, with one exception: a printed reference that no index lists is read once by a model before it counts as a citation error. Claims are extracted by a model and kept only when their quote appears verbatim in the text; each cited source is then checked, with a model’s help, for whether it says what the claim relies on. Those verdicts can be wrong — read the claim’s quote and the cited source before relying on one.
Statistics and arithmetic are recomputed, not judged.
Confidence bands are shown only for fields calibrated on our annotated test set. None is calibrated yet, so no band is shown.
What counts as a claim ›How we measure confidence ›How we check this ›
Are you an author, or do you see a problem with this page? Request a review
