Studying the Moderating Role of Financial Biases on Relationship between Financial Managers Individual Properties and Companies Circumstances on Financial Performance of Accepted Companies in Tehran Sock Exchange

Subject Areas : Financial and Behavioral Researches in Accounting

Raheleh Moradi ¹ , Faegh Ahmadi ² , Hamidreza Kordlouei ³ , Jahanbakhsh Asadnia ⁴

1 - Ph.D. student of Accounting, Islamic Azad University, Qeshm Branch
2 - استادیار گروه حسابداری و مدیریت مالی، واحد قشم، دانشگاه آزاد اسلامی، قشم، ایران
3 - دانشیار و و عضو هیئت علمی گروه حسابداری دانشگاه آزاد اسلامی واحد اسلامشهر
4 - استاد مدعو و دکتری حسابداری، گروه حسابداری، واحد قشم، دانشگاه آزاد اسلامی، قشم، ایران

Received: 2021-11-05 Accepted : 2021-12-16 Published : 2021-11-22

Keywords: companies', Financial Performance, Financial biases, circumstances, individual properties, structural equation modeling,

Abstract :

Behavioral biases can disturb the process of managers’ decision making and cause to the under estimate results. Therefore, in this research the effect of financial manager's individual properties and companies circumstances on financial performance of accepted companies in Tehran stock exchange was studied trough the moderating role of financial biases. For this purpose statistical population included of financial managers of accepted companies in Tehran stock exchange. Also, for determining sample volume and sampling method, the Cochran's formula (421 persons) and available method were used. For data analyzing the structural equation modeling with partial least squares (PLS) method was applied. Results indicated that: a) “Financial manager's individual properties” has positive significant effect on companies' financial performance. b) “Companies circumstances” has positive significant effect on companies' financial performance. c) Entering financial biases as the moderating variable reduces the positive effect of financial manager's individual properties and companies' circumstances on companies' financial performance. Finally according to the inverse significant effect of behavioral biases of financial managers on financial performance of companies, adjusting the behavioral biases by consult with experts and participate in short run and long run training programs, suggested to financial managers.

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