Managers' money beliefs and financing attitudes

According to behavioral studies, the decision-making and behavior of company managers are among the factors affecting the type of their attitude toward various issues. This study aims to study the relationship between managers' money beliefs to their financing tendencies (internal or external).

In this study, data were collected through a questionnaire and the convenient sampling method. The study population is CEOs or financial managers of companies listed on the Tehran Stock Exchange in 2021. The study sample size (n = 183) was determined using the Morgan table, and 159 usable answer sheets were received.

The results of the statistical analysis of data did not show a significant relationship between money avoidance beliefs and financing attitudes. In addition, the money vigilance belief had a positive relationship with the tendency to finance through retained earnings, stock issuance, and borrowing. Money status belief had a positive association with the external financing attitude (borrowing and stock). The money worship belief was positively related to the financing attitude through retained earnings and the issuance of shares.

Originality / Value: 

Since managers' money beliefs can affect their behavior, this issue has not been the focus of previous research. The results of this research can be effective in improving decision-making. Also, the results of this research expand the literature in the field of financing. Companies can pay attention to the money beliefs of managers to reduce the conflict of interests between shareholders and managers by predicting their financing policies and considering the company's development policies.