Cash Holding Decision from Managerial Overconfidence and its Effect on Firm Performance
Managerial overconfidence significantly influences firm performance. The main purpose of this research is how to find the impact of managerial overconfidence along with cash holding decision might be more negatively serious on firm performance. An empirical study is conducted on a sample of 648 firm...
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| Format: | Article |
| Language: | Russian |
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Government of the Russian Federation, Financial University
2024-04-01
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| Series: | Финансы: теория и практика |
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| Online Access: | https://financetp.fa.ru/jour/article/view/3244 |
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| _version_ | 1850025897193635840 |
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| author | N.T.T. Dao |
| author_facet | N.T.T. Dao |
| author_sort | N.T.T. Dao |
| collection | DOAJ |
| description | Managerial overconfidence significantly influences firm performance. The main purpose of this research is how to find the impact of managerial overconfidence along with cash holding decision might be more negatively serious on firm performance. An empirical study is conducted on a sample of 648 firms listed in the Vietnam stock market. The research predicts that the higher the level of managerial overconfidence, the greater the risk and likelihood of loss in firm value, especially with inappropriate cash holding decision. Finally, the empirical results reveal a positive correlation between managerial overconfidence and firm value. However, firms characterized by both managerial overconfidence and low cash holdings tend to exhibit poorer performance compared to others. Those results are satisfied the purpose of the research. |
| format | Article |
| id | doaj-art-654a4c3d67aa41d5a909d6782d8722d2 |
| institution | DOAJ |
| issn | 2587-5671 2587-7089 |
| language | Russian |
| publishDate | 2024-04-01 |
| publisher | Government of the Russian Federation, Financial University |
| record_format | Article |
| series | Финансы: теория и практика |
| spelling | doaj-art-654a4c3d67aa41d5a909d6782d8722d22025-08-20T03:00:41ZrusGovernment of the Russian Federation, Financial UniversityФинансы: теория и практика2587-56712587-70892024-04-010010.26794/2587-5671-2026-30-2-1650-011208Cash Holding Decision from Managerial Overconfidence and its Effect on Firm PerformanceN.T.T. Dao0VNU University of Economics and Business, Vietnam National UniversityManagerial overconfidence significantly influences firm performance. The main purpose of this research is how to find the impact of managerial overconfidence along with cash holding decision might be more negatively serious on firm performance. An empirical study is conducted on a sample of 648 firms listed in the Vietnam stock market. The research predicts that the higher the level of managerial overconfidence, the greater the risk and likelihood of loss in firm value, especially with inappropriate cash holding decision. Finally, the empirical results reveal a positive correlation between managerial overconfidence and firm value. However, firms characterized by both managerial overconfidence and low cash holdings tend to exhibit poorer performance compared to others. Those results are satisfied the purpose of the research.https://financetp.fa.ru/jour/article/view/3244cash holdingscorporate financemanagerial overconfidenceoverconfident managermanagerial optimismfirm performancefirm valuevietnam |
| spellingShingle | N.T.T. Dao Cash Holding Decision from Managerial Overconfidence and its Effect on Firm Performance Финансы: теория и практика cash holdings corporate finance managerial overconfidence overconfident manager managerial optimism firm performance firm value vietnam |
| title | Cash Holding Decision from Managerial Overconfidence and its Effect on Firm Performance |
| title_full | Cash Holding Decision from Managerial Overconfidence and its Effect on Firm Performance |
| title_fullStr | Cash Holding Decision from Managerial Overconfidence and its Effect on Firm Performance |
| title_full_unstemmed | Cash Holding Decision from Managerial Overconfidence and its Effect on Firm Performance |
| title_short | Cash Holding Decision from Managerial Overconfidence and its Effect on Firm Performance |
| title_sort | cash holding decision from managerial overconfidence and its effect on firm performance |
| topic | cash holdings corporate finance managerial overconfidence overconfident manager managerial optimism firm performance firm value vietnam |
| url | https://financetp.fa.ru/jour/article/view/3244 |
| work_keys_str_mv | AT nttdao cashholdingdecisionfrommanagerialoverconfidenceanditseffectonfirmperformance |