The inflated perceptions of financial literacy and its role in financial decision-making

Non-argumentative approaches such as the impact of people's emotions, perception, moral backgrounds and also some aspects of psychology can have profound effects on decision-making by people, and empirical researchers have recognized the impact of these factors on accounting and financial issues since the past decades. Therefore, the main goal of the current research is to investigate the inflated perceptions of finance literacy as one of the psychological and non-argumentative dimensions and its role in financial decision making. This research is in the field of applied research. Standard and researcher-made questionnaires were used to collect data. The validity of the questionnaires was confirmed by experts and its reliability was confirmed through Cronbach's alpha. To analyze the research data, logit and probit models were used based on Stata 15 software. The results indicate a negative and significant effect of inflated perceptions of financial literacy on managers' financial decision-making, and therefore it is recommended to moderate them by providing more information or counseling, considering that the origin of cognitive errors is incorrect reasoning.