The Effect of Managerial Overconfidence on Internal Financing (Case Study: Stock Exchange Member Companies)

The purpose of this research is to investigate the impact of management overconfidence on internal financing of stock exchange member companies and the present research method is descriptive-correlational. The statistical population of this research includes the senior and middle managers of Isfahan city, and its sample size is 108 people according to the Morgan table for this statistical population. The measuring tool of this research is a questionnaire and Cronbach's alpha were used to determine its reliability. Also, in order to check the correctness of the main assumptions of the present research, causal relationships based on structural equation modeling have been used. Due to the complexity of the research model, partial least squares method was used to test the conceptual model of the research using SmartPLS software, and to check the quality or the validity of the model has been used from a credit check that includes the subscription credit check index and the filler credit check index. The results of the hypothesis test of this research indicate that the mediating role of internal financing decisions in the relationship between the amount Managerial overconfidence is related to investment efficiency. The findings of this research show that managerial overconfidence has an effect on internal financing decisions and internal financing decisions have an effect on the efficiency of investment.