Title of article :
The Relationship between Managers’ Overconfidence and Financing Decisions with Special Focus on Ownership Structure
Author/Authors :
Salehi ، Soosan Department of Accounting - Barayand Institute of Higher Education , Abdoli ، Mohammad Reza Department of Accounting - Islamic Azad University, Shahrood Branch , Eskandari ، Mehdi Department of Accounting - Islamic Azad University, Shahrood Branch
Abstract :
Overconfidence is one of the critical concepts of modern behavioral finance highly interested in financial theories and psychology. The main objective of the present research is to study the relationship between managers’ overconfidence and financing decisions (capital structure) concentrated on ownership structure in Tehran Stock Exchange. Research time span is from 2011 to 2015 (a 5-year period). Results of testing research hypotheses of 146 firms revealed that overconfidence and ownership type have no significant effect on financial decisions. In addition, ownership type and institutional owner ration showed no significant effect on the relationship between overconfidence and financial decisions. Whereas, according to the obtained results, institutional owner ratio significantly influences financial decisions.
Keywords :
Managers’ overconfidence , Capital structure , Ownership structure , Institutional owner ratio
Journal title :
International Journal of Management,Accounting and Economics(IJMAE)
Journal title :
International Journal of Management,Accounting and Economics(IJMAE)
