Board Governance， Managerial Overconfidence and Acquisition Decision

The purpose of this article was to make a theoretical analysis and empirical study of the relationship between the executives’overconfident psychological characteristics in Chinese listed company and enterprises’M & A from the financial perspective of Behavioral Corporate. The results imply that executives’overconfident level is positively correlated with enterprises’mergers， which means that the executives’overconfidence is a great motivation for mergers. Further research shows that strengthened independence of the board doesn’t necessarily bring about the weakening of the executives’overconfident behavior. Separating duties between the Chairman of the Board and the General Manager is beneficial for the weakening of M & A driven by executives’overconfidence.