Investigating the Impact of Management Characteristics on Final Value of Cash Considering the Components of Management Ability, Management Over confidence, and CEO's financial Expertise

AbstractThe underlying philosophy of resource management is to create effectiveness and efficiency. Cash is one of the most important and basic resources of any economic unit, which is at the disposal of management and can be used to guide and control matters. These funds can be valued by shareholders more than their nominal value. The present study seeks to investigate the effect of management characteristics on the marginal value of cash. Selective components for management characteristics in this study included management ability, management overconfidence, and CEO financial expertise. The statistical population of this study was all companies listed on the TEHRAN stock exchange in the period ۲۰۰۹ to ۲۰۱۸. The statistical sample was selected by a systematic removal method with ۱۷۲ companies. The statistical software used in this study was Eviews۱۰& Stata۴ . The research method was applied in terms of purpose and pre-event in terms of the data collection method. Data analysis was performed using the panel data technique. Managerial Overconfidence Excessive management trust and management ability were significantly associated with the marginal value of cash. There was no evidence of a relationship between the CEO's financial expertise and the marginal value of cash. According to the research results, it can be stated that the ability of management along with the excessive trust of management is one of the components affecting the marginal value of cash.

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Keywords: management ability , Management Overconfidence , CEO financial expertise , the marginal value of cash