Relationship between Managerial Overconfidence and Internal Controls over Financial Reporting

The aim of this study is to examine the association between managerial overconfidence and the existence of important weak points in internal controls in financial reporting of the firms listed in the Tehran Stock Exchange, TSE. In other studies, there are evidences on the effects of managerial overc...

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Autores principales:	Mohamadreza Mehrabanpour (Ph.D), Mansour Mohammadi, Mohammad Ali Rajabbeyki
Formato:	article
Lenguaje:	FA
Publicado:	Shahid Bahonar University of Kerman 2018
Materias:	internal control investment efficiency operational efficiency overconfidence Accounting. Bookkeeping HF5601-5689
Acceso en línea:	https://doaj.org/article/cfe569862ac64a1fb26ef5cac6f3df97
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spelling	oai:doaj.org-article:cfe569862ac64a1fb26ef5cac6f3df972021-11-04T19:53:27ZRelationship between Managerial Overconfidence and Internal Controls over Financial Reporting2008-89142476-292X10.22103/jak.2017.10178.2380https://doaj.org/article/cfe569862ac64a1fb26ef5cac6f3df972018-01-01T00:00:00Zhttps://jak.uk.ac.ir/article_1863_53536e4f83f566724eda85c13498a72e.pdfhttps://doaj.org/toc/2008-8914https://doaj.org/toc/2476-292XThe aim of this study is to examine the association between managerial overconfidence and the existence of important weak points in internal controls in financial reporting of the firms listed in the Tehran Stock Exchange, TSE. In other studies, there are evidences on the effects of managerial overconfidence on firms’ control of activities. Based on the tenets of overconfidence, it is expected that the overconfident managers keep on internal control at less effectiveness. This is because they overestimate their own ability, and believe they can control events and risks, which are actually out of their control. This study used data collected from a sample of 90 firms listed in the TSE in the period 2007 to 2015, to test the hypothesis in logistic and panel data regression models. Findings indicated that there exists positive significant relationship between the managerial overconfidence and weaknesses in internal control, and that these managers are not able to mitigate the negative consequences of ineffective internal contorols (inefficient investments and low future operating efficiency).Mohamadreza Mehrabanpour (Ph.D)Mansour MohammadiMohammad Ali RajabbeykiShahid Bahonar University of Kermanarticleinternal controlinvestment efficiencyoperational efficiencyoverconfidenceAccounting. BookkeepingHF5601-5689FAمجله دانش حسابداری, Vol 8, Iss 4, Pp 119-139 (2018)
institution	DOAJ
collection	DOAJ
language	FA
topic	internal control investment efficiency operational efficiency overconfidence Accounting. Bookkeeping HF5601-5689
spellingShingle	internal control investment efficiency operational efficiency overconfidence Accounting. Bookkeeping HF5601-5689 Mohamadreza Mehrabanpour (Ph.D) Mansour Mohammadi Mohammad Ali Rajabbeyki Relationship between Managerial Overconfidence and Internal Controls over Financial Reporting
description	The aim of this study is to examine the association between managerial overconfidence and the existence of important weak points in internal controls in financial reporting of the firms listed in the Tehran Stock Exchange, TSE. In other studies, there are evidences on the effects of managerial overconfidence on firms’ control of activities. Based on the tenets of overconfidence, it is expected that the overconfident managers keep on internal control at less effectiveness. This is because they overestimate their own ability, and believe they can control events and risks, which are actually out of their control. This study used data collected from a sample of 90 firms listed in the TSE in the period 2007 to 2015, to test the hypothesis in logistic and panel data regression models. Findings indicated that there exists positive significant relationship between the managerial overconfidence and weaknesses in internal control, and that these managers are not able to mitigate the negative consequences of ineffective internal contorols (inefficient investments and low future operating efficiency).
format	article
author	Mohamadreza Mehrabanpour (Ph.D) Mansour Mohammadi Mohammad Ali Rajabbeyki
author_facet	Mohamadreza Mehrabanpour (Ph.D) Mansour Mohammadi Mohammad Ali Rajabbeyki
author_sort	Mohamadreza Mehrabanpour (Ph.D)
title	Relationship between Managerial Overconfidence and Internal Controls over Financial Reporting
title_short	Relationship between Managerial Overconfidence and Internal Controls over Financial Reporting
title_full	Relationship between Managerial Overconfidence and Internal Controls over Financial Reporting
title_fullStr	Relationship between Managerial Overconfidence and Internal Controls over Financial Reporting
title_full_unstemmed	Relationship between Managerial Overconfidence and Internal Controls over Financial Reporting
title_sort	relationship between managerial overconfidence and internal controls over financial reporting
publisher	Shahid Bahonar University of Kerman
publishDate	2018
url	https://doaj.org/article/cfe569862ac64a1fb26ef5cac6f3df97
work_keys_str_mv	AT mohamadrezamehrabanpourphd relationshipbetweenmanagerialoverconfidenceandinternalcontrolsoverfinancialreporting AT mansourmohammadi relationshipbetweenmanagerialoverconfidenceandinternalcontrolsoverfinancialreporting AT mohammadalirajabbeyki relationshipbetweenmanagerialoverconfidenceandinternalcontrolsoverfinancialreporting
_version_	1718444619975360512

Relationship between Managerial Overconfidence and Internal Controls over Financial Reporting

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