The impact of kind of attitude executives on Information Asymmetry, Financial Leverage and Firm's Value

This study is conducted to investigate the impacts of two attitudes of executive managers (CEO Overconfidence and Managerial Ability) on some of the financial policies (financial leverage) as well as its consequences on the information asymmetry and the Firm's Valuein the corporations listed in Tehran Stock Exchange (TSE). In this investigation, CEO Overconfidence was calculated using Ishikawa-Takashi model (2010) and Managerial Ability was measured by Demerjian et al. (2009) in 160 companies for the period 2010-2015. To evaluate the effect of the kind of the executive manager's attitude on the information asymmetry, financial leverage and the Firm's Value, the panel data regression model and the software including STATA and Eviews7 were applied. The results achieved by testing the research hypotheses showed that the companies with Managerial Ability have higher Firm's Value and lower financial leverage and information asymmetry. Furthermore, the companies with CEO Overconfidence have lower value and higher financial leverage and information asymmetry. Moreover, all control variables except the company's growth have significant effect on the information asymmetry, financial leverage and the Firm's Value.