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Executives Overconfidence, Over-Pessimism and Dividend Herd Behavior |
HU Xiuqun1,LV Rongsheng1 |
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Abstract Based on the data of Chinese A-share listed companies during 2007-2011, this paper investigates the relationship between executives overconfidence, over-pessimism and herd behavior of the Cash Dividends Policy. The results show that: there is significant relationship between executives overconfidence, over-pessimism and herd behavior of cash dividend payout level. The dividend herd behavior is less likely to occur in listed companies of existing overconfident executives and over-pessimistic executives, but occurs more frequently in listed companies with moderate rational executives. Moreover, we find that the negative correlation between executives overconfidence, over-pessimism and dividend herd behavior is significant in non-state controlled listed companies, but the positive correlation between executives moderate rational behavior and dividend herd behavior is always significant, which implies dividend herd behavior is a rational choice of executives in listed companies.
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Received: 17 April 2013
Published: 15 July 2013
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Corresponding Authors:
LV Rongsheng
E-mail: lvrsheng@126.com
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