Investigating the Effect of the Effect of Quality of Internal Controls on Managerial Myopia With Emphasis on the Moderating Role of Institutional Investors Horizon

Myopia can be defined as a way of thinking or planning that sacrifices long-term profitability for short-term projects or goals. Therefore, short-term goals will have profound consequences for economic and financial systems. Among the factors that can determine the level of short-sighted behavior of managers are institutional investors and regulatory mechanisms. Therefore, the internal control system as one of the supervisory mechanisms may be effective on the Managerial Myopia. An effective internal control system can help limit the opportunistic behavior of managers and lead to greater compliance with financial reporting standards.Meanwhile, institutional investors can be more effective observers, because they can adopt different formal and informal mechanisms to influence the management. the heterogeneity of institutional investors' horizons may affect the extent of effective management monitoring. Therefore, the purpose of the present study is to investigate the effect of the quality of internal controls on Managerial Myopia, emphasizing the moderating role of institutional investors' horizons.Therefore, to achieve the research goal, 90 sample companies were collected in the period 2013 to 2021 and analyzed by descriptive-correlation analysis with multiple regression tests. Netaj showed that there is a positive and significant relationship between the quality of internal controls and Managerial Myopia, and long-term institutional investors do not have a moderating effect on the relationship between the quality of internal controls and Managerial Myopia.