Accounting and Auditing Research

Accounting and Auditing Research

Explaining the Model of Managerial Overconfidence in Companies Listed on the Tehran Stock Exchange

Document Type : Original Article

Authors
Nafiseh Ghomi 1
Zohreh Hajiha 2
Mozhgan Safa 3
Reza Gholami Jamkarani 4
1 PhD Student in Accounting, Qom Branch, Islamic Azad University, Qom, Iran
2 Professor, Department of Accounting, ST.C., Islamic Azad University, Tehran, Iran Mozhgan Safa
3 Assistant Professor, Department of Accounting, Qom Branch, Islamic Azad University, Qom, Iran
4 Associate Professor, Department of Accounting, Qom Branch, Islamic Azad University, Qom, Iran
10.22034/iaar.2025.222679
Abstract
Introduction: Overconfidence is one of the most important behavioral concepts in financial and psychological theories. Overconfidence makes a person overestimate his knowledge and skills and underestimate the risks and feel that he has control over issues and events, while this may not be the case in reality.
Purpose: The purpose of this research is to explain the overconfidence pattern of managers in companies listed on the Tehran Stock Exchange.
Methodology: In line with the purpose of the research, research information was collected from the financial statements of listed companies in the period of 1389-1400. Multivariate regression method with panel data was used for statistical analysis.
Results: The findings of the research model test show that net profit margin, profit per share, return on assets, current ratio, financial leverage, ratio of sales to total assets, ratio of sales to accounts receivable, ratio of current assets to assets, The ratio of cash to assets, the ratio of operating cash to assets, the size of the company, the ratio of operating profit are some of the factors affecting the overconfidence criteria of managers.
Innovation: The results of this research provide useful information for policymakers and institutions that compile accounting standards regarding the quality of financial reporting for investors and develop the results of behavioral research in the financial field.
Keywords
Overconfidence of Managers
Financial Leverage
Asset Return
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Accounting and Auditing Research
Volume 17, Issue 65
Spring 2025
Pages 5-22