Journal of Accounting and Management Vision

Journal of Accounting and Management Vision

Investigating the impact of CEO overconfidence on the relationship between cash holding level and anomalous stock returns in companies listed in the Tehran stock exchange

Document Type : Original Article

Authors
Amir Ghafourian Shagerdi 1
Reza Jahanshiri 2
Mohammad Sajjad Ghafourian Shagerdi 3
1 Department of Accounting, Faculty of Management and Accounting, Imam Reza International University, Mashhad, Iran
2 M.A. in Accounting- Auditing, Faculty of Management and Accounting, , Department of Accounting , Imam Reza International University, Mashhad, Iran
3 M.A. in Business Management- Strategic Management, Faculty of Management and Accounting, Department of Management, Imam Reza International University, Mashhad, Iran
Abstract
This study investigating the impact of CEO overconfidence on the relationship between cash holding level and anomalous stock returns in companies that listed in the Tehran stock exchange. This research is objectively, appliable and through the method of collecting and analyzing in the field of descriptive, correlational. The statistic sociaty population of this research, includes the firms listed in the Tehran stock exchange as 109 companies operating in various industries over the years 2012 to 2017. Cash holding level variables were used to measure variable held cash equivalents over the previous year, divided by the market value of the company in the previous year, and to measure the anomalous stock return variable, the difference between the return of the company and the expected return of the company. The test assumptions of this study are regular multiple regression with and using the eviews software. According to the results of the mentioned test assumptions shows that: there is not a significant relationship between cash holding level and anomalous stock returns. Also CEO overconfidence had not a significant impact on the relationship between cash holding level and anomalous stock returns.
Keywords
CEO overconfidence
Cash holding level
Anomalous stock returns
Tehran stock exchange