The Impact of Managers' Overconfidence on Operating Cash Flow Manipulation

Cash flows play an important role in almost all the decisions of groups such as securities analysts, creditors and managers. Some managerial characteristics, such as overconfidence, can lead to cash manipulation, which can lead to managers engaging in activities that lead to misallocation of resources and a waste of company value and shareholder wealth in the long run. The purpose of this study is to investigate the effect of Managerial overconfidence and manipulation of operating cash flow. Research in terms of purpose is part of applied research and research method in terms of nature and content is cause and effect. The research was conducted in the framework of deductive-inductive reasoning and panel analysis was used to analyze the hypotheses. To collect information, data from 142 companies listed on the Tehran Stock Exchange in the period 1391-1399 have been used. The results of this study show that managers' overconfidence has a positive and significant effect on manipulating the flow of operational cash.