Investigating the Mediating Role of Comparability of Financial Statements on the Relationship between Managers' Opportunistic Behavior and Investors' Divergence of Opinions
Subject Areas : Financial and Behavioral Researches in Accounting
mohsen tohidloo
1
,
علی بیات
2
,
Ali Mohammadi
3
,
VAHAB ROSTAMI
4
1 - PhD Student in Accounting, Department of Accounting, Zanjan Branch, Islamic Azad University,Zanjan, Iran
2 - assistant professor, Department of Accounting, Zanjan Branch, Islamic Azad University, Zanjan, Iran
3 - assistant professor, Department of Accounting, Zanjan Branch, Islamic Azad University, Zanjan, Iran
4 - assistant professor, Department of Accounting, Zanjan Branch, Islamic Azad University, Zanjan, Iran
Keywords: Financial statements comparability, Divergence of investors' behavior, Earnings management, Managers' overconfidence,
Abstract :
Beliefs and emotional tendencies of investors can influence the direction of trading volumes and stock market prices by creating changes in the capital market environment. This paper has investigated the mediating role of comparability of financial statements on the relationship between managers' opportunistic behavior and investors' divergence of opinions. This research was conducted post-event and using the causal correlation method. The companies listed to the Tehran Stock Exchange. formed the statistical population of the research, and by applying the desired conditions and systematically removing, it we used information of from 134 companies as a research sample in the period of 2014 to 2023. Divergence of investors' behavior has been calculated using the index of unexpected trading volume and managers' opportunistic behaviors have been measured by two factors of real earnings management and managers' overconfidence. The findings indicated that earnings management and management overconfidence have a direct and significant relationship with the divergence of investors' behavior. Also, the comparability of financial statements moderates the positive relationship between real earnings management and management's overconfidence on the divergence of investors' behavior regarding determining the correct figure of the intrinsic value of stocks while making investment decisions.
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