Investigating the impact of overconfidence and managerial ability on audit reporting and turnover

Managerial overconfidence leads to more aggressive investment and financing decisions. Auditors may be convinced that management overconfidence is indicative of management competence and conclude that management's plans are sufficient to overcome substantial doubt about the client's ability to continue as a going concern for a reasonable period of time. Managers who "seem" overconfident do not always have the same abilities. Therefore, the purpose of this research is to investigate the effect of overconfidence and managerial ability on the reporting and audit turnover of companies admitted to the Tehran Stock Exchange between 2015 and 2014 with a sample of 185 companies and logistic regression and combined data to test hypotheses. It was discussed that the results of the research showed that the manager's overconfidence has a negative and significant effect on the audit report and turnover, and in other research results it was observed that the manager's ability with the audit report and turnover has a direct and significant effect.