The Impact of Managerial Overconfidence on Financing Decisions: Evidence from Türkiye’s Chemical Industry

This study examines business managers' behavioural tendencies in financing decision-making, with a particular focus on overconfidence. The analysis developed three models for the chemical sector, using short-term debt ratio (STD), long-term debt ratio (LTD), and leverage ratio (LEV) as dependent variables. The study examined how managers' overconfidence levels affect financing decisions and their relationships with other determinants. The research used panel data analysis of annual data from selected chemical companies traded on Borsa Istanbul (BIST) for 2011-2022. The findings show that business managers' overconfidence has a significant and distinct effect on financing decisions in chemical sector companies.