The purpose of the current study was investigating the effect of managing director`s overconfidence on financing policies and investment efficiency in Tehran stock exchange. The statistical population of this study included listed companies in the Tehran stock exchange and its statistical sample included the data of 139 companies during 2011-2018, for seven years. The methodology of this research was done through systematic deletion and the method used for estimating the pattern was multivariate regression method using the estimation of integrated data having constant effects. The results showed that overconfidence of managers had a reversed and significant effect on the investment efficiency and it had a direct and significant relationship on over-investment. Moreover, more investigations showed that in case company managers have access to internal financial resources, they would tend to have over-investments; however, financing from resources outside the company would lead to under-investment. Therefore, managers` overconfidence, as a characteristic feature, affected their financing decisions and investment. Most of these managers have boldly behaviors due to overconfidence on their own decisions which may lead to taking non-optimal decisions regarding the investments so that through increasing over-investments, it may lead to a reduction in the investment efficiencies of the companies.
- حق عضویت دریافتی صرف حمایت از نشریات عضو و نگهداری، تکمیل و توسعه مگیران میشود.
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