جستجوی مقالات مرتبط با کلیدواژه « managerial overconfidence » در نشریات گروه « حسابداری »

The Sustainable Development Performance is a vital issue to win the trust of investors, which can ensure the survival of the company in today's competitive markets. Investors Sentiment and their trust can affect both the company's performance and the market's performance. Based on this, this study examines the relationship between the company's sustainable development performance, investors' sentiments and Managerial overconfidence using information and data of companies admitted to the Tehran Stock Exchange during the years 2013 to 2022. Multivariate linear regression method was used to analyze the data. The obtained results show that all four dimensions of sustainable development performance of companies (economic, social, accounting and environmental dimensions) have a significant impact on Investor Sentiment. Also, the results confirmed the positive and direct impact of Investor Sentiment on Managerial overconfidence. The results of this study show the role and importance of sustainable development performance for companies from a new perspective.

Income reported by companies is an important financial information that is considered when deciding individuals .Financial analysts consider the reported profit to be a major factor in their own financial statements and judgments. Profit fluctuations are an important criterion for the company's overall risk, and companies with a more sophisticated, less risky interest. On the other hand, more confidence can lead to a false decision. The present study has studied the reliability and risk appetite of steel industry managers' decisions on profit smoothing. In terms of purpose-based categorization, it has been applied in a descriptive-correlational manner. The statistical population of the research includes all financial employees with a ten-year experience in the steel complexes of the country. The research tool wasstandard and researcher-made questionnaires, and according to the conditionalization of the statistical population, all subjects were included in the study, after removing the distorted versions or including incomplete answers, 145 copies of the collected questionnaires were included in the analysis. The validity of the research tool was calculated using face-to-face validity, content, and confirmatory factor analysis and its reliability was calculated through Cronbach's alpha. In order to analyze the data, structural equation modeling using Smart PLS software was used. The results of the information analysis show the effect of the more reliable dimensions of steel industry executives on the smoothing of profits with different intensity; So that the coefficient of T-statistic estimated by the directors' authority on 95% confidence smoothing the profit is equal to -0.818 with a reverse relationship and strong spectral intensity, but the effect of the risk appetite of contingency decisions of steel industry executives on profit smoothing, With a coefficient of 0.830, the result is ineffective. Also, exploitation and the likelihood of steel industry managers have a fairly strong spectral effect on the smoothing of profits, but their self-assertion on profit smoothing has had a weak spectral effect.

Access to cash flow is primarily important for the substantiation of corporation investment plans but in various situations, the effect of cash flow on investment may change. Accordingly, the present study has dealt with the impact of financial constraints and managerial overconfidence on investment-cash flow sensitivity. The statistical sample consisted of 153 companies accepted in Tehran Stock Exchange from 2013 to 2021. The required data were collected from audited financial statements in Coda website. 8 hypotheses were proposed in this study and then tested using regression econometrics with fixed effects and Probit regression in EViews. Cash flow has a significantly positive effect on investment and overinvestment. Moreover, financial constraint increases positive investment and overinvestment-cash flow sensitivity although managerial overconfidence has no significant impact on investment and overinvestment sensitivity to cash flow. Yet, when the correlation between financial constraint and managerial overconfidence is considered, positive investment and overinvestment-cash flow sensitivity is reinforced which indicates the important role of financial constraint on adopting investment decisions. By supporting the theory of investment-cash flow sensitivity, findings of the study show that financial constraint, managerial overconfidence, and cash flow all have a vital effect on corporation investment decision making.

This study examines the effect of firms’ chief executive officers’ overconfidence on their firms’ profitability and the predictability of this profitability. The study tests hypotheses regarding the significant positive impact of chief executive officers' overconfidence on profitability and its predictability. This is accomplished using the Generalized Method of Moments regression analyses on data from 257 CEOs of firms listed on the Tehran Securities Exchange over a sixteen-year period. The initial results indicate positive impacts of overconfidence on firms’ profitability and the predictability of future profitability. The robustness of the findings was tested by altering the profitability measures from return on assets (ROA) and return on equity (ROE) to Tobin's Q, as well as by changing the proxy for managerial overconfidence. These checks emphasize the role of overconfidence in the examined context. These findings support the positive roles of employing overconfident managers in the firms. By contributing to the limited body of literature on the positive effects of managers’ overconfidence, the findings can be used by investors, analysts, and other users of the results to consider overconfidence in their analyses of profitability and its predictability.

One of the important factors to solve the economic problems of countries is the expansion and development of investment, but this alone is not enough and due to the limitation of financial resources, in addition to the issue of investment development, increasing the efficiency of investment is also one of the important issues. The purpose of this research is to investigate the moderating role of management overconfidence on the relationship between social relations of the board of directors and investment efficiency. The statistical research population of companies admitted to Tehran Stock Exchange and the studied sample includes 140 admitted companies during the years 2015 to 2019. The research method is descriptive and in terms of the relationship between the variables, it is causal-correlation, and in terms of the objective, it is applied and in terms of the event, it is post-event. The regression method and panel data as well as the fixed effects model were used to process and test the hypotheses. The results obtained from the hypothesis show that managerial overconfidence has a negative and significant effect on the relationship between social relations of the board of directors and investment efficiency.

The present research is aimed at investigating the relationship among managerial overconfidence, internal information quality, and investment efficiency in companies listed on the Tehran Stock Exchange (TSE). To this end, the financial information of 84 companies listed on the Tehran Stock Exchange (TSE) during the years 2014-2021 was employed. The research results indicate a positive significant relationship among the internal information quality, investment efficiency, and overinvestment; however, the relationship between the quality of internal information and underinvestment is negative and significant. Further, the results revealed that managerial overconfidence improves the relationship between the internal information quality and investment efficiency, while it weakens the relationship among the earning announcement rate, the accuracy of profit forecast by management, and overinvestment. Nevertheless, the opposite applies concerning the absence of updated financial statements due to significant errors. Moreover, the relationship among the earning announcement rate, the accuracy of profit forecast by management, and underinvestment is not affected by managerial overconfidence; but managerial overconfidence strengthens the relationship between the absence of updated financial statements due to significant mistakes and underinvestment.

Managerial overconfidence leads to more aggressive investment and financing decisions. Auditors may be convinced that management overconfidence is indicative of management competence and conclude that management's plans are sufficient to overcome substantial doubt about the client's ability to continue as a going concern for a reasonable period of time. Managers who "seem" overconfident do not always have the same abilities. Therefore, the purpose of this research is to investigate the effect of overconfidence and managerial ability on the reporting and audit turnover of companies admitted to the Tehran Stock Exchange between 2015 and 2014 with a sample of 185 companies and logistic regression and combined data to test hypotheses. It was discussed that the results of the research showed that the manager's overconfidence has a negative and significant effect on the audit report and turnover, and in other research results it was observed that the manager's ability with the audit report and turnover has a direct and significant effect.

Accounting Conservatism and risk disclosure are two information policies that managers can use to transfer business uncertainties to external users. Managers are expected to coordinate their reporting and disclosure choices by considering the cost and benefit of these two choices when making financial reporting decisions and coordinate or trade off the two options of conservatism and risk disclosure. This study investigated the relationship between conditional conservatism and risk disclosure. It also analyzed the effect of the factors of the level of debt financing needs and the manager's overconfidence by using a multiple regression model based on the sample of 87 companies listed on the Tehran stock exchange for the period of 2011 to 2020. The results indicate that managers use conditional conservatism and risk disclosure as two complementary information policies to reduce information asymmetry and agency costs. By applying more Conditional conservatism, managers improve the level of risk disclosure in proportion to the level of uncertainty perceived through risk disclosure by users to maintain consistency between quantitative and qualitative information. The debt financing needs has a negative and significant effect, and the overconfidence characteristic of managers has no significant effect on the relationship between the level of conditional conservatism and the level of risk disclosure of firms. Companies with a higher debt financing needs use more conditional conservatism than risk disclosure to reduce debt Costs. The results show that the relative costs and benefits of conservative reporting and risk disclosure affect financial reporting policies regarding risks and uncertainties.

One of the most important decisions managers should take and one of the crucial components of every business unit operation is financing. Managers have the control over choosing the resource of financing and compared with external financing, internal financing is much easier for them. Choosing the optimal financing policy by managers plays an important role in risk and wealth creation for shareholders. Manager’s over confidence is an important behavioual characteristic that affect the way managers invest, finance and decide on dividend policies. Managers prefer internal financing over external financing because they have more control on internal resources and then, when this is combined with risk-taking behavior of  over confident managers they can affect the investment efficiency since they may stray from the optimal level of investment. On the other hand, if managers feel that corporate governance mechanisms constraint them or they have insufficient internal resources for investing, they may be reluctant to invest. The purpose of this study is to investigate the relationship between management over-confidence, internal financing and investment efficiency.

This is an applied reseach and it is a quasi-emprical research and its methodology is  post-event research. This research investigates the real data of firms listed on Tehran Stock Exchange (TSE) and because of that its results are generalizable to the research population. In this research we have used systematic elimination method to chose the research sample. In order to test the research hypothesis, time priod of 2012 to 2018 were chosen and the multivariate regression model by combined data method was used obtain the results. Data from 188 firms were analyzed and we used Microsoft Excel and Eviews version 9 to analyze the data and extract research results.

The results of testing research hypotheses show that there is a negative significant relationship between internal financing and investment efficiency. It can be said that the benefits of internal financing has decreased the efficiency of firms’ investment, an example of this benefits is the availability of internal resources. This availability cause managers to violate the optimum level of investment (over-invest or under-invest in projects). Also, there is a negative relationship between internal financing and over-investment and a positive relation between internal financing and under-investment. Putting into another words, in firms with under-investment, the level of internal financing is higher and the amount of external resources for financing decreases. So, the internal financing is one of the reasons we have under-investment in firms. In addition, taking together the effects of management over confidence and internal financing, investment efficiency decreases. This results are consistent with research theoretical literature. In contrast to internal financing, external financing creates some limitations for managers and because of that managers are reluctant to finance through external resources. So, this is why the revel of investment strays form its optimum level. This results are in line with He et al (2019), Taghizade Khanqah & Badavar Nahandi (2020) and Faraji et al (2019).

Internal financing is a factor that affect under-investment positively. So, based on managers control over internal resources and their concern about valuation of their firm by market, it is evident that they prefer to face minimally with control mechanisms and external regulation. In addition, it can be said that, it is not always for the best interest of firm and its shareholders to have a high degree of internal financing. Therefore stockholders should consider this in their analysis. Putting constraints on the level of internal financing (based on its effect on the level of investment by managers) by stake holders can affect the return of firm considerably. Also, the relationship between use of internal financing and the level of investment by managers and their over-confidence may be a two-way relationship. With an increase in the use of internal financing and the decreasion of over-investment and increasion of under-investment, the predicted income of projects and the firm in total may be decreased, that in this case the over-confidence of managers will in turn decrease again.

In this study, we try to address the effect of managers' mistrust on the financing methods of companies listed on the Tehran Stock Exchange. The statistical population of all companies listed on the Tehran Stock Exchange is between 2011 and 2021. For this purpose, first we identify the companies that have one of the goals of increasing their capital and then a series of factors that we examine in each company. These factors can be: leverage, capital increase, overconfidence, institutional ownership. First, referring to the site of the Stock Exchange Organization, and there, by examining the companies whose purpose of increasing their capital was to reform the financial structure, selected companies were selected. Then, among the selected companies, the companies that had the conditions of adjustment of the statistical community were examined, and finally 167 companies were selected. After selecting the companies, to calculate the variables, information was extracted from three main financial statements: balance sheet, profit and loss statement and cash flow statement of the company. According to the hypothesis test, it was found that financial leverage and capital increase after reforming the capital structure (financial context) is significantly different and such a significant relationship was not observed in other variables.

The effect of managers' overconfidence on the possibility of financial crisesIn this study, the relationship between the Managerial overconfidence and Financial distress like lihoood is examined. The research sample consists of 185 firms listed in Tehran Stock Exchange during 1389 to 1393 and in the period studied by systematic elimination method was studied. To review hypothesis of research, logistic regression model was used. The results of this study show that in the period studied, Managerial overconfidence and Financial distress likelihoood and there is a significant positive relationship. In other words, the Managerial overconfidence in firms is increasing the financial distress likelihood. In other words, Managerial overconfidence, increasing the Financial distress likelihoood in the firms. The effect of Managerial overconfidence, on the Financial distress likelihoood is significant at 95 percent confidence level. The results show that the life of the company depends on the ability of company managers and the satisfaction of a wide range of related groups of the companyKeywords: Managerial overconfidence, Financial distress likelihoood, Profitability Ratio, logistic regression

This study investigates the relationship between managerial overconfidence and labor investment efficiency in companies listed on the Tehran Stock Exchange. The present study is applied in terms of purpose and is causally (post-event) in terms of correlation methodology. The statistical population of the study is all companies listed on the Tehran Stock Exchange and using the systematic elimination sampling method, 120 companies were selected as the research sample and were studied in a period of six years between 1393 to 1398. Eviews software version 9 and multiple regression based on composite data were used to test the research hypotheses. To measure managerial overconfidence, the model proposed by Hong et al. (2016) and to the labor investment efficiency, the model proposed by Pinak and Liliz (2007) has been used. The results show that managerial overconfidence has a negative and significant effect on labor investment efficiency.

Financial statements approved by the auditor are the most important source of information for investors. Therefore, determining the audit fee with the company management decision is very important. Management also has characteristics that are considered in negotiation for audit fees. The purpose of this study is to investigate the effect of managers’ ability and corporate governance mechanisms on the relationship between managerial overconfidence and audit fees.

The research hypotheses were tested by collecting data from 124 companies listed in Tehran Stock Exchange and Farabours during the period 2014-2019. Management ability was measured using Demirjian et al.’s (2012) Data Envelopment Analysis (DEA) model and managerial overconfidence was also measured through the index of excess investment in the assets of Ahmed and Duelman’s (2013) model and corporate governance was also measured by the model introduced by Cassell et al. (2012) for the board of directors and audit committee  

According to research findings, management ability has a negative and significant effect on the relationship between managerial overconfidence and audit fees. But the effect of the board of directors and audit committee on the relationship between managerial overconfidence and audit fees were not significant.

This study revealed that managers with higher ability are more likely to reduce the risk of auditing , even in firms with managerial confidence .

Contribution: 

Since management overconfidence increases the risk of optimal decisions in the company, therefore by examining the significant impact of management ability and corporate governance mechanisms on audit fees in companies with overconfident managers, this study adds a new perspective to the literature of management characteristics and management relationships with auditor through audit fees.

The purpose of this study is to examine the effect of Managerial overconfidence the Relationship between internal financing and investment efficiency.The statistical population of the study is Tehran Stock Exchange companies. Sampling method was used for systematic sampling (screening), according to which 87 companies were selected as sample. The present research is an applied and post-event method. The realm of research has been from 2012 to 2017. To investigate the hypotheses of the research, ordinary least squares method has been used in the form of Eviews software. Research findings show that internal financing has a positive and fair effect on investment efficiency. And internal financing does not have a positive relationship with investment. Also, internal financing has a negative and equitable relationship with low investment. The Managerial overconfidence on the relationship between internal financing and investment efficiency is not the same.

Managers’ personality traits can affect investment decisions of a firm. One of the most important personality traits of managers, which affects risk taking is overconfidence. Overconfidence can be defined as an idle belief  in oneself cognitive abilities, judgments and intuitive reasoning. Overconfident managers overestimate their information accuracy and consiquently, their enterprise future earnings and cash flows. Also they may invest in projects with no cash flow required to achieve shareholders' expected return.  This study is aimed to investigate effects of Financial Reporting Quality on the relation between Managerial Overconfidence and Investment Efficiency in Firms Listed in Tehran Stock Exchange. The sample consists of 112 firms listed in Tehran Stock Exchange during the years from 2007 to 2015. This study uses a manager's bias as a criterion in order to measure managerial overconfidence. Financial reporting quality in this study for each firm-year is measured using accounting data of a five year period and rolling regression.The results of testing first hypothesis suggest that managerial overconfidence leads to a reduction of investment efficiency.The results of testing second hypothesis indicates that Financial Reporting Quality weakens the relation between Managerial Overconfidence and Investment Efficiency. According to further investigations, firm size, sales growth and operating cash flow ratio have a significant relation with investment efficiency.

When firms correct the mistakes of the previous periods or change accounting procedures, they must restate their comparative financial statements. Restatement of financial statements has a negative impact on the relevance and reliability of financial information. It can lead to numerous negative consequences for investors and other stakeholders. The importance of restated financial statement justifies the efforts made to identify its determining factors. Overconfidence is one of the most important characteristics of managers that may lead to provide false financial statements. This article aims to study the effect of managerial overconfidence on the restatement of financial statements. The sample size consisted of 117 listed firms in Tehran Stock Exchange (TSE) from 2008 to 2014. Two measures based on the investment decisions of managers were employed to measure the managerial overconfidence. Since most Iranian firms restate their financial statements, this article studies the effect and severity of managerial overconfidence on restatement of financial statements. The severity of restatement is operationalized by the level of the restated net earnings. In order to achieve the objectives, two hypotheses were designed. For hypothesis testing, logistic regression and multivariate linear regression methods were employed. The results of hypothesis testing show that managerial overconfidence significantly leads to the increase in frequency and severity of restated financial statement. Findings also show that larger firm size leads to reduced restated severity.

Overconfidence occurs when people consider their abilities more than what they are. Overconfident managers overestimate their abilities in financial decision makings. Managerial overconfidence may affect a firm policies and decisions. This study is aimed to investigate the effects of managerial overconfidence on firm’s risk-taking and performance. This study uses multivariate regression model and panel data method to test the hypothesis. Independent variable is managerial overconfidence measured by 2 proxies based on investment. Dependent variables are risk-taking (Stock return SD and operating cash flow SD) and performance (ROA, ROE, and Qtobin ratio). The sample includes 150 firms listed in Tehran Stock Exchange during 2011-2015. The results show that managerial overconfidence has no effects on risk-taking and performance.

In this research, managerial overconfidence is considered as a behavioral explanation for the improper adjustment costs. This study aims to investigate the effect of managerial overconfidence on improper adjustment costs. With using the powerful technique of panel, we  have applied remained overinvestment as index of managerial overconfidence and also other control variables affecting cost stickiness such as the number of the staff, the amount of assets, consecutive decline in sales, natural logarithm 1 in addition to the yield of initial annual share, free cost flow, constant payment to managers. Sampling population of the present study includes 91 accepted companies at Tehran stock exchange and manufacturing parts in the time period of 2007-2016. Based on the findings, the effects of managerial overconfidence on improper adjustment improper adjustment costs is accepted and we can say that too much confidence and trust of the manager leads to increase in cost stickiness. Also, other control variables have meaningful effects on improper adjustment cost.

Overconfidence is one of the most important personal characteristics of managers. Theoretically, Manager’s riskiness is directly related to this characteristic. The Possibility of unqualified opinion increases, if the auditor recognizes this personality trait of the managers and overestimates financial reporting risk due to Managerial Overconfidence. This study is aimed to determine the relationship between Managerial Overconfidence and Unqualified Audit Opinion in firms listed in Tehran Stock Exchange. This research uses the library research to collect theoretical basics and data and applies correlation method to test the hypothesis. The statistical population includes all listed companies in Tehran Stock Exchange and the sample consists of 66 companies during the period from 2007 to 2014. The logistic regression method is used to test the hypotheses of the research. The results show that Managerial Overconfidence has significant and negative relationship with Unqualified Audit Opinion. That means any increase of Managerial Overconfidence decreases the possibility of Unqualified Audit Opinion