Investigating the Relationship between Managerial overconfidence, internal financing, and investment efficiency

The purpose of this study is to investigate the relationship between managers' overconfidence and internal financing and investment efficiency of the company. The statistical population of this research is the companies listed on the Tehran Stock Exchange and the sample of the research in terms of some characteristics includes 104 companies in the period 1393 to 1397. The present research method is descriptive- correlation and the research hypotheses have been tested using the generalized least squares method. The results of testing the research hypotheses indicate that there is a positive and significant relationship between managers' overconfidence and internal financing and between internal financing and investment efficiency, as well as the interaction between overconfidence Managers and internal financing affect investment efficiency. Findings show that increasing domestic financing expands business investment, thereby improving investment efficiency. Internal financing plays a mediating role between over-managerial confidence and investment efficiency. Managers with too much confidence are more inclined to increase domestic financing.