The Effect of Managerial Overconfidence on the quality of financial reporting and conditional conservatism, in Tehran Stock Exchange

The main purpose of this study was "The Effect of Managerial Overconfidence on the quality of financial reporting and conditional conservatism, in Tehran Stock Exchange during the years 1390 to 1394". The population is 512 companies. The research method was descriptive correlational approach has been applied. The data collection methods are library and financial statements. In general, the statistical method used in this research is correlation and regression.Overconfidence management as the independent variable and the quality of financial reporting and conditional conservatism are the dependent variables. Firm size, financial leverage, the ratio of accruals and operating cash flow are the variables are controlled.
The results of the first research hypothesis show that there is significant adverse impact Managerial Overconfidence on the quality of financial reporting. The results of the second research hypothesis show that there is significant adverse impact Managerial Overconfidence on the conditional conservatism. The results of the third hypothesis show that conditional conservatism would become strong effect of Managerial Overconfidence on the quality of financial reporting. The results of the control variables showed that the size of the company has significant direct impact on the quality of financial reporting and conditional conservatism. Accruals and financial leverage have significant adverse impact on the quality of financial reporting and have a significant directly impact on conditional conservatism.