Examining Managerial Overconfidence Effect on Earnings Smoothing in Companies Listed in Tehran Stock Exchange

Earnings smoothing is affected significantly by expectations about future earnings, and overconfidence affects such expectations. Overconfident managers by the belief that they possess special information (that the others do not) overestimate their information integrity and consequently their firms’...

Descripción completa

Guardado en:

Detalles Bibliográficos
Autores principales:	Ghasem Blue, Masoud Hasani Alghar
Formato:	article
Lenguaje:	FA
Publicado:	Shahid Bahonar University of Kerman 2015
Materias:	managerial overconfidence earnings smoothing managers’ investment decisions operating cash flow Accounting. Bookkeeping HF5601-5689
Acceso en línea:	https://doaj.org/article/8228f7f1004b44cc9e2129f7e278f3e1
Etiquetas:	Agregar Etiqueta Sin Etiquetas, Sea el primero en etiquetar este registro!

id	oai:doaj.org-article:8228f7f1004b44cc9e2129f7e278f3e1
record_format	dspace
spelling	oai:doaj.org-article:8228f7f1004b44cc9e2129f7e278f3e12021-11-04T19:47:54ZExamining Managerial Overconfidence Effect on Earnings Smoothing in Companies Listed in Tehran Stock Exchange2008-89142476-292X10.22103/jak.2015.986https://doaj.org/article/8228f7f1004b44cc9e2129f7e278f3e12015-09-01T00:00:00Zhttps://jak.uk.ac.ir/article_986_3dbdfd33f9642ce9e369fd28502e0abd.pdfhttps://doaj.org/toc/2008-8914https://doaj.org/toc/2476-292XEarnings smoothing is affected significantly by expectations about future earnings, and overconfidence affects such expectations. Overconfident managers by the belief that they possess special information (that the others do not) overestimate their information integrity and consequently their firms’ future earnings and cash flows, and usually have positive perspective on firm’s future risks and returns. This study investigates the impact of managerial overconfidence on earnings smoothing. The statistical population for this study consists of companies listed in the Tehran Stock Exchange between the years 2009 and 2013. To measure overconfidence, two criteria are defined that are based on investment decisions. Earnings smoothing is measured by the ratio of standard deviation of operating earnings to standard deviation of operating cash flow, both based on adjusted total assets. The results from research indicated a significant positive relationship between managerial overconfidence and earnings smoothing. Also, the results showed in the firms with higher systematic risk, the probability of earnings smoothing is more.Ghasem BlueMasoud Hasani AlgharShahid Bahonar University of Kermanarticlemanagerial overconfidenceearnings smoothingmanagers’ investment decisionsoperating cash flowAccounting. BookkeepingHF5601-5689FAمجله دانش حسابداری, Vol 6, Iss 21, Pp 33-56 (2015)
institution	DOAJ
collection	DOAJ
language	FA
topic	managerial overconfidence earnings smoothing managers’ investment decisions operating cash flow Accounting. Bookkeeping HF5601-5689
spellingShingle	managerial overconfidence earnings smoothing managers’ investment decisions operating cash flow Accounting. Bookkeeping HF5601-5689 Ghasem Blue Masoud Hasani Alghar Examining Managerial Overconfidence Effect on Earnings Smoothing in Companies Listed in Tehran Stock Exchange
description	Earnings smoothing is affected significantly by expectations about future earnings, and overconfidence affects such expectations. Overconfident managers by the belief that they possess special information (that the others do not) overestimate their information integrity and consequently their firms’ future earnings and cash flows, and usually have positive perspective on firm’s future risks and returns. This study investigates the impact of managerial overconfidence on earnings smoothing. The statistical population for this study consists of companies listed in the Tehran Stock Exchange between the years 2009 and 2013. To measure overconfidence, two criteria are defined that are based on investment decisions. Earnings smoothing is measured by the ratio of standard deviation of operating earnings to standard deviation of operating cash flow, both based on adjusted total assets. The results from research indicated a significant positive relationship between managerial overconfidence and earnings smoothing. Also, the results showed in the firms with higher systematic risk, the probability of earnings smoothing is more.
format	article
author	Ghasem Blue Masoud Hasani Alghar
author_facet	Ghasem Blue Masoud Hasani Alghar
author_sort	Ghasem Blue
title	Examining Managerial Overconfidence Effect on Earnings Smoothing in Companies Listed in Tehran Stock Exchange
title_short	Examining Managerial Overconfidence Effect on Earnings Smoothing in Companies Listed in Tehran Stock Exchange
title_full	Examining Managerial Overconfidence Effect on Earnings Smoothing in Companies Listed in Tehran Stock Exchange
title_fullStr	Examining Managerial Overconfidence Effect on Earnings Smoothing in Companies Listed in Tehran Stock Exchange
title_full_unstemmed	Examining Managerial Overconfidence Effect on Earnings Smoothing in Companies Listed in Tehran Stock Exchange
title_sort	examining managerial overconfidence effect on earnings smoothing in companies listed in tehran stock exchange
publisher	Shahid Bahonar University of Kerman
publishDate	2015
url	https://doaj.org/article/8228f7f1004b44cc9e2129f7e278f3e1
work_keys_str_mv	AT ghasemblue examiningmanagerialoverconfidenceeffectonearningssmoothingincompanieslistedintehranstockexchange AT masoudhasanialghar examiningmanagerialoverconfidenceeffectonearningssmoothingincompanieslistedintehranstockexchange
_version_	1718444603261059072

Examining Managerial Overconfidence Effect on Earnings Smoothing in Companies Listed in Tehran Stock Exchange

Ejemplares similares