Influence of the managerial overconfidence on the discretionary accruals in listed companies in Tehran Stock Exchange

Investors and corporate executives pay attention to profits reporting accurately. The management is aware of the importance of corporate profits for the beneficiaries and they know their reward as a natural consequenceof accounting earnings. This study examines the impact of the managerial overconfidence indiscretionary accruals. In this study, data from 69 firms listed in the Tehran Stock Exchange were collected for the years 1385 to 1391. The multivariate regression model was used for analysis of the survey data in combination and to evaluate the managerial overconfidence, the residual error of the model of surplusinvestment in assets was used. The results show that the managerial overconfidence has a significant effect on discretionary accruals. This suggests that the managers who have excess trust, heavily manipulate the earnings through discretionary accruals

Keywords:

Managerial Overconfidence , Earnings Management , Discretionary Accruals