The Mediating Effect of Overconfidence of managers on the Relationship between Attribution Bias and Performance of Companies Listed in Tehran Stock Exchange

Document Type : Original Article

Authors

• Amin Nazemi ¹
• Shahrokh Sheidaee ²

¹ Accounting, Economic and management faculty, Shiraz university, Shiraz, Iran.

² Student

https://doi.org/10.22067/mfe.2023.82897.1308

Abstract

The aim of the study is to investigate the mediating effect of overconfidence of managers in the relationship between documentary bias and the performance of companies listed on the Tehran Stock Exchange. The current research is applied and from the methodological point of view, the correlation is causal type (post-event). The statistical population of the research is all the companies admitted to the Tehran Stock Exchange and using the systematic elimination sampling method, 128 companies were selected as the research sample and were examined in a period of 8 years (within a period of 6 months) between 2015 and 2022 . The results of the research hypothesis test showed that positive stock returns have a direct relationship with internal self-attribution and negative stock returns with external attribution bias. Also, managers' overconfidence has a direct relationship with documentary bias, and finally it was found that overconfidence has a mediating role on the relationship between documentary bias and company performance.

Keywords

• Self-Attribution Bias
• Company performance
• managers' overconfidence

Main Subjects

• Exchange