Staff View: Overconfidence, ownership control and financial distress in different types of state-owned enterprises: evidence from China / Abraham Simon Otim Emuron ...[et al.]

Overconfidence, ownership control and financial distress in different types of state-owned enterprises: evidence from China / Abraham Simon Otim Emuron ...[et al.]

This study distinguished between the different forms of ownership in China’s listed state-owned enterprises (SOEs) and then examined how managerial overconfidence within these forms of ownership control affects firms’ likelihood of facing distress. Ownership control was categorized into distinct for...

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Main Authors:	Emuron, Abraham Simon Otim, Tian, Yixiang, Coffie, Cephas Paa Kwasi, Opoku-Mensah, Evans
Format:	Article
Language:	English
Published:	UiTM Press 2021
Subjects:	HG Finance
Online Access:	https://ir.uitm.edu.my/id/eprint/61673/1/61673.pdf https://doi.org/10.24191/MAR.V20i03-04 https://ir.uitm.edu.my/id/eprint/61673/ https://mar.uitm.edu.my/ https://doi.org/10.24191/MAR.V20i03-04
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id	my.uitm.ir.61673
record_format	eprints
spelling	my.uitm.ir.616732022-06-15T05:49:32Z https://ir.uitm.edu.my/id/eprint/61673/ Overconfidence, ownership control and financial distress in different types of state-owned enterprises: evidence from China / Abraham Simon Otim Emuron ...[et al.] Emuron, Abraham Simon Otim Tian, Yixiang Coffie, Cephas Paa Kwasi Opoku-Mensah, Evans HG Finance This study distinguished between the different forms of ownership in China’s listed state-owned enterprises (SOEs) and then examined how managerial overconfidence within these forms of ownership control affects firms’ likelihood of facing distress. Ownership control was categorized into distinct forms of ownership, namely, state asset management bureaus (SAMBs), state owned enterprises (SOEs) affiliated to the central government (SOECGs), and SOEs affiliated to the local government (SOELGs). Using a sample of China’s listed SOEs from 2003 – 2018 this study empirically proves that China’s listed SOEs managerial overconfidence is significantly related to financial distress, however the possibility of falling prey to financial distress varies depending on the type of ownership control (SAMBs, SOELGs, and SOECGs) responsible for managing firms’ affairs. We observed that, in the presence of overconfident managers, SAMBs are the least likely to face financial distress followed by SOECGs, with SOELGs have the highest chance of falling into financial distress. This study contributes to the literature by providing evidence that lumping SOEs into one homogeneous group is biased as the different forms of ownership controls have unique characteristics. UiTM Press 2021-12 Article PeerReviewed text en https://ir.uitm.edu.my/id/eprint/61673/1/61673.pdf Overconfidence, ownership control and financial distress in different types of state-owned enterprises: evidence from China / Abraham Simon Otim Emuron ...[et al.]. (2021) Management and Accounting Review (MAR), 20 (3): 4. pp. 82-106. ISSN 2550-1895 https://mar.uitm.edu.my/ https://doi.org/10.24191/MAR.V20i03-04 https://doi.org/10.24191/MAR.V20i03-04
institution	Universiti Teknologi Mara
building	Tun Abdul Razak Library
collection	Institutional Repository
continent	Asia
country	Malaysia
content_provider	Universiti Teknologi Mara
content_source	UiTM Institutional Repository
url_provider	http://ir.uitm.edu.my/
language	English
topic	HG Finance
spellingShingle	HG Finance Emuron, Abraham Simon Otim Tian, Yixiang Coffie, Cephas Paa Kwasi Opoku-Mensah, Evans Overconfidence, ownership control and financial distress in different types of state-owned enterprises: evidence from China / Abraham Simon Otim Emuron ...[et al.]
description	This study distinguished between the different forms of ownership in China’s listed state-owned enterprises (SOEs) and then examined how managerial overconfidence within these forms of ownership control affects firms’ likelihood of facing distress. Ownership control was categorized into distinct forms of ownership, namely, state asset management bureaus (SAMBs), state owned enterprises (SOEs) affiliated to the central government (SOECGs), and SOEs affiliated to the local government (SOELGs). Using a sample of China’s listed SOEs from 2003 – 2018 this study empirically proves that China’s listed SOEs managerial overconfidence is significantly related to financial distress, however the possibility of falling prey to financial distress varies depending on the type of ownership control (SAMBs, SOELGs, and SOECGs) responsible for managing firms’ affairs. We observed that, in the presence of overconfident managers, SAMBs are the least likely to face financial distress followed by SOECGs, with SOELGs have the highest chance of falling into financial distress. This study contributes to the literature by providing evidence that lumping SOEs into one homogeneous group is biased as the different forms of ownership controls have unique characteristics.
format	Article
author	Emuron, Abraham Simon Otim Tian, Yixiang Coffie, Cephas Paa Kwasi Opoku-Mensah, Evans
author_facet	Emuron, Abraham Simon Otim Tian, Yixiang Coffie, Cephas Paa Kwasi Opoku-Mensah, Evans
author_sort	Emuron, Abraham Simon Otim
title	Overconfidence, ownership control and financial distress in different types of state-owned enterprises: evidence from China / Abraham Simon Otim Emuron ...[et al.]
title_short	Overconfidence, ownership control and financial distress in different types of state-owned enterprises: evidence from China / Abraham Simon Otim Emuron ...[et al.]
title_full	Overconfidence, ownership control and financial distress in different types of state-owned enterprises: evidence from China / Abraham Simon Otim Emuron ...[et al.]
title_fullStr	Overconfidence, ownership control and financial distress in different types of state-owned enterprises: evidence from China / Abraham Simon Otim Emuron ...[et al.]
title_full_unstemmed	Overconfidence, ownership control and financial distress in different types of state-owned enterprises: evidence from China / Abraham Simon Otim Emuron ...[et al.]
title_sort	overconfidence, ownership control and financial distress in different types of state-owned enterprises: evidence from china / abraham simon otim emuron ...[et al.]
publisher	UiTM Press
publishDate	2021
url	https://ir.uitm.edu.my/id/eprint/61673/1/61673.pdf https://doi.org/10.24191/MAR.V20i03-04 https://ir.uitm.edu.my/id/eprint/61673/ https://mar.uitm.edu.my/ https://doi.org/10.24191/MAR.V20i03-04
_version_	1736837357257097216
score	13.223943

Overconfidence, ownership control and financial distress in different types of state-owned enterprises: evidence from China / Abraham Simon Otim Emuron ...[et al.]

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