Top managers´ confidence, ultimate controller and firm value: An empirical study based on panel data of a shares on Shanghai stock exchange

In this paper, with the use of 2010-2012 Shanghai A-shares panel data, we divide the original sample into two groups: overconfidence group and appropriate confidence group based on the changes of top managers´ shareholding ratio. Then we respectively analyze their impact on firm value, particularly explore the moderate effect of ultimate controller type. The results show that the overconfidence of top managers has a significant negative effect on firm value, and this influence is more outstanding in state controlled companies; while top managers´ appropriate confidence has a positive effect on firm value, but ultimate controller type has no significant moderate effect on it.