Explanation the Effect of Management Overconfidence on Distortion and Manipulation of Operational Cash Flow in Listed Companies in Tehran Stock Market

Todays, continuous and purposeful studies, has more important and useful role in financial, economics and accounting areas. Overconfidence is one of the most important personality traits of managers in the field of modern behavioral principles; therefore, and also considering the importance of the company's operating cash flows and its effects on profitability, investigating the relationship between this issue and managers' overconfidence creates a good ground to measure its effect on the company's value and can be useful for the information users. In the present study, for detailed and punctiliousness review,cash flows divide in quarterly and next the effect of managers' overconfidence on Operating cash flow manipulation has been investigated. For this purpose, 111 statistical samples were selected to test the hypotheses in the fiscal year of 2013 to 2019 (a 7-year period). The hypotheses were tested at an error level of 0.05 using data extracted from Eviews software and mixed data method (pulling and panel data). According to the theoretical foundations, overconfident managers with excessive optimism, invest more than right amount, and try to hide their performance in using the company's financial resources on operating cash flows by manipulating the company's financial statements and operating cash flows. Based on the results of hypotheses testing, first, managers' overconfidence has no significant effect on manipulating small negative cash flows. Second, managers' overconfidence does not have a significant effect on manipulating the upward positive cash flows.