Effect Of Managers' Behavioral policy On Abnormal Transactions With Affiliates

Subject Areas : Public Policy In Administration

nazanin bashirimanesh ¹ ( Assistant Professor, Department of Accounting, Faculty of Management, Economics and Accounting, Payam Noor University, Tehran, Iran. (Corresponding Author) [e-mail] )
zohreh arefmanesh ² ( Assistant Professor, Department of Accounting, Faculty of Management, Economics and Accounting, Yazd University, Yazd, Iran. )
mohammad souri ³ ( MSc. Student in Accounting, pnu universityt,Tehran, Iran )

Received: 2022-03-28 Accepted : 2022-05-09 Published : 2022-04-21

Keywords: Managers' shortsightedness, Managers' narcissism, managers' overconfidence, Abnormal dealings with dependents,

Abstract :

Background: The main role of managers in companies is to make decisions in various areas such as investment, profit sharing policy, transactions with affiliates. One of the factors influencing managers' decision-making approaches is their behavioral policy.Objective: The present study investigates the effect of managers' behavioral bias on abnormal transactions with affiliates.Methods: The statistical population of the study is the companies listed on the Tehran Stock Exchange and using the systematic elimination sampling method, 146 companies were selected as the sample of the research in a period of 7 years between 1392 to 1398. The method used to collect information is a library and the relevant data for measuring variables were collected from the Cadal site and companies' financial statements and in Excel preliminary calculations were performed and then Stata software was used to test the research hypotheses.Findings: The results show that managers' narcissism has a significant inverse effect on abnormal net credit and abnormal net sales. However, managers' overconfidence has a direct and significant effect on abnormal net worth and abnormal net sales. Also, managers' shortsightedness has a direct and significant effect on abnormal net credit and abnormal net sales.Conclusion: Transactions with affiliates allow the exchange of resources, services, or liabilities with individuals such as major shareholders, affiliates, and subsidiaries. Therefore, the behavioral policy of managers affects the use of transactions with affiliates in order to achieve personal goals or promote profitability.

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