Investigating the moderating role of management overconfidence on the relationship between social relations of the board of directors and investment efficiency

One of the important factors to solve the economic problems of countries is the expansion and development of investment, but this alone is not enough and due to the limitation of financial resources, in addition to the issue of investment development, increasing the efficiency of investment is also one of the important issues. The purpose of this research is to investigate the moderating role of management overconfidence on the relationship between social relations of the board of directors and investment efficiency. The statistical research population of companies admitted to Tehran Stock Exchange and the studied sample includes 140 admitted companies during the years 2015 to 2019. The research method is descriptive and in terms of the relationship between the variables, it is causal-correlation, and in terms of the objective, it is applied and in terms of the event, it is post-event. The regression method and panel data as well as the fixed effects model were used to process and test the hypotheses. The results obtained from the hypothesis show that managerial overconfidence has a negative and significant effect on the relationship between social relations of the board of directors and investment efficiency.