The Relationship between Managers' Overconfidence and Financing Decisions with Special Focus on Ownership Structure
Year: 2025
Type: article
Abstract: Overconfidence is one of the critical concepts of modern behavioral finance highly interested in financial theories and psychology. The main objective of the present research is to study the relationship between managers’ overconfidence and financing decisions (capital structure) concentrated on ownership structure in Tehran Stock Exchange. Research time span is from 2011 to 2015 (a 5-year period). Results of testing research hypotheses of 146 firms revealed that overconfidence and ownership type have no significant effect on financial decisions. In addition, ownership type and institutional owner ration showed no significant effect on the relationship between overconfidence and financial decisions. Whereas, according to the obtained results, institutional owner ratio significantly influences financial decisions.
Authors: Salehi, Soosan, Abdoli, Mohammad Reza, Eskandari, Mehdi
Institution: Islamic Azad University, Shahrood
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W7104048917
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