Relationship between Managerial Overconfidence and Internal Controls over Financial Reporting
The aim of this study is to examine the association between managerial overconfidence and the existence of important weak points in internal controls in financial reporting of the firms listed in the Tehran Stock Exchange, TSE. In other studies, there are evidences on the effects of managerial overc...
| Main Authors: | , , |
|---|---|
| Format: | Article |
| Language: | fas |
| Published: |
Shahid Bahonar University of Kerman
2018-01-01
|
| Series: | مجله دانش حسابداری |
| Subjects: | |
| Online Access: | https://jak.uk.ac.ir/article_1863_53536e4f83f566724eda85c13498a72e.pdf |
| _version_ | 1819012661292040192 |
|---|---|
| author | Mohamadreza Mehrabanpour (Ph.D) Mansour Mohammadi Mohammad Ali Rajabbeyki |
| author_facet | Mohamadreza Mehrabanpour (Ph.D) Mansour Mohammadi Mohammad Ali Rajabbeyki |
| author_sort | Mohamadreza Mehrabanpour (Ph.D) |
| collection | DOAJ |
| description | The aim of this study is to examine the association between managerial overconfidence and the existence of important weak points in internal controls in financial reporting of the firms listed in the Tehran Stock Exchange, TSE. In other studies, there are evidences on the effects of managerial overconfidence on firms’ control of activities. Based on the tenets of overconfidence, it is expected that the overconfident managers keep on internal control at less effectiveness. This is because they overestimate their own ability, and believe they can control events and risks, which are actually out of their control.
This study used data collected from a sample of 90 firms listed in the TSE in the period 2007 to 2015, to test the hypothesis in logistic and panel data regression models. Findings indicated that there exists positive significant relationship between the managerial overconfidence and weaknesses in internal control, and that these managers are not able to mitigate the negative consequences of ineffective internal contorols (inefficient investments and low future operating efficiency). |
| first_indexed | 2024-12-21T01:47:36Z |
| format | Article |
| id | doaj.art-cfe569862ac64a1fb26ef5cac6f3df97 |
| institution | Directory Open Access Journal |
| issn | 2008-8914 2476-292X |
| language | fas |
| last_indexed | 2024-12-21T01:47:36Z |
| publishDate | 2018-01-01 |
| publisher | Shahid Bahonar University of Kerman |
| record_format | Article |
| series | مجله دانش حسابداری |
| spelling | doaj.art-cfe569862ac64a1fb26ef5cac6f3df972022-12-21T19:19:58ZfasShahid Bahonar University of Kermanمجله دانش حسابداری2008-89142476-292X2018-01-018411913910.22103/jak.2017.10178.23801863Relationship between Managerial Overconfidence and Internal Controls over Financial ReportingMohamadreza Mehrabanpour (Ph.D)0Mansour Mohammadi1Mohammad Ali Rajabbeyki2Assistant Professor of Accounting, University of Tehran, Tehran, Iran.Ph.D. Student of Accounting, University of Tehran, Tehran, Iran.Ph.D. Student of Accounting, University of Tehran, Tehran, Iran.The aim of this study is to examine the association between managerial overconfidence and the existence of important weak points in internal controls in financial reporting of the firms listed in the Tehran Stock Exchange, TSE. In other studies, there are evidences on the effects of managerial overconfidence on firms’ control of activities. Based on the tenets of overconfidence, it is expected that the overconfident managers keep on internal control at less effectiveness. This is because they overestimate their own ability, and believe they can control events and risks, which are actually out of their control. This study used data collected from a sample of 90 firms listed in the TSE in the period 2007 to 2015, to test the hypothesis in logistic and panel data regression models. Findings indicated that there exists positive significant relationship between the managerial overconfidence and weaknesses in internal control, and that these managers are not able to mitigate the negative consequences of ineffective internal contorols (inefficient investments and low future operating efficiency).https://jak.uk.ac.ir/article_1863_53536e4f83f566724eda85c13498a72e.pdfinternal controlinvestment efficiencyoperational efficiencyoverconfidence |
| spellingShingle | Mohamadreza Mehrabanpour (Ph.D) Mansour Mohammadi Mohammad Ali Rajabbeyki Relationship between Managerial Overconfidence and Internal Controls over Financial Reporting مجله دانش حسابداری internal control investment efficiency operational efficiency overconfidence |
| title | Relationship between Managerial Overconfidence and Internal Controls over Financial Reporting |
| title_full | Relationship between Managerial Overconfidence and Internal Controls over Financial Reporting |
| title_fullStr | Relationship between Managerial Overconfidence and Internal Controls over Financial Reporting |
| title_full_unstemmed | Relationship between Managerial Overconfidence and Internal Controls over Financial Reporting |
| title_short | Relationship between Managerial Overconfidence and Internal Controls over Financial Reporting |
| title_sort | relationship between managerial overconfidence and internal controls over financial reporting |
| topic | internal control investment efficiency operational efficiency overconfidence |
| url | https://jak.uk.ac.ir/article_1863_53536e4f83f566724eda85c13498a72e.pdf |
| work_keys_str_mv | AT mohamadrezamehrabanpourphd relationshipbetweenmanagerialoverconfidenceandinternalcontrolsoverfinancialreporting AT mansourmohammadi relationshipbetweenmanagerialoverconfidenceandinternalcontrolsoverfinancialreporting AT mohammadalirajabbeyki relationshipbetweenmanagerialoverconfidenceandinternalcontrolsoverfinancialreporting |