Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/317657 
Year of Publication: 
2023
Citation: 
[Journal:] Journal of Business Economics and Management (JBEM) [ISSN:] 2029-4433 [Volume:] 24 [Issue:] 5 [Year:] 2023 [Pages:] 939-959
Publisher: 
Vilnius Gediminas Technical University, Vilnius
Abstract: 
Based on behavioral finance theory, we discuss the influence of managers' herd behavior on corporate financialization from the perspective of managers' behavioral preferences. Empirical testing was conducted using data from nonfinancial listed firms on the Shanghai and Shenzhen A-shares from 2007 to 2021 and a U-shaped relationship was found between managerial herd behavior and corporate financialization. When managerial herd behavior is within an appropriate range, the increase in managerial herd behavior has a negative influence on corporate financialization. In contrast, excessive managerial herd behavior leads to excessive corporate financialization. Additionally, corporate governance has a weakening effect on this relationship. Heterogeneity analyses indicate significant disparities in the effect of managerial herd behavior on corporate financialization among enterprises with diverse ownership structures. Finally, corporate financialization and innovation investments have an inverted U-shaped relationship, and their relationship is moderated positively by management herd behavior. Our results have strong practical significance for fostering the balanced growth of the financial sector and the real economy.
Subjects: 
corporate financialization
information learning motivation
innovative investments
internal corporate governance level
managerial herd behavior
ownership structure
self-interest motivation
JEL: 
D22
G11
G32
G40
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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