parameter

Calculating method

Overconfidence

Measured by a dummy variable. It has been illustrated in Overconfidence measuring

Z-lack

“poor financial capacity”, measured by a dummy variable. It has been illustrated in Overconfidence measuring

FCF

Free cash flow.

(2)

OCF is the net cash flow created by operation activities.

Dep is depreciation and amortisation;

authority

Dummy variable. If the board chairman is appointed as manager as well, authority = 1; otherwise, authority = 0.

concentration

Ownership Concentration

board

The size of the board