Investigating the Mediating Role of Operating Cash Flow and Tax Aggressiveness on the Relationship Between Managerial Overconfidence and Firm Value Using A Static and Dynamic Approach
Subject Areas : Financial and Behavioral Researches in Accounting
Reza Shamgani
1
,
Bahareh Banitalebi Dehkordi
2
,
Sorour Tirbakhsh Gouran
3
1 - Phd Student, Department of Accounting, Shahrekord Branch, Islamic Azad University, Shahrekord, Iran
2 - Associate Professor of Accounting, Shahrekord Branch, Islamic Azad University, Shahrekord, Iran
3 - Department of Accounting, Shahrekord Branch, Islamic Azad University, Shahrekord, Iran
Keywords: Managerial Overconfidence, Firm Value, Operating Cash Flow, Tax Aggressiveness, Static And Dynamic Approach,
Abstract :
Background and Purpose: In today's business environment, issues related to financial management, trust, and firm value are critical for the robustness and progress of any organization. Among the factors that may influence these relationships are the mediating roles of operating cash flow and tax aggressiveness. This research aims to investigate how operating cash flow and tax aggressiveness mediate the relationship between managerial overconfidence and firm value in companies listed on the Tehran Stock Exchange. Methodology: To test the research hypotheses, we selected 166 companies as the research sample for the period between 2014 and 2019. We analyzed the data using the regression method with static and dynamic panel data, utilizing Eviews13 software. Findings: The research reveals a positive and significant relationship between managerial overconfidence and firm value. Additionally, the findings indicate that operating cash flow and tax aggressiveness mediate this relationship. Discussion: This research demonstrates that operating cash flow and tax aggressiveness play essential mediating roles in the relationship between managerial overconfidence and firm value. These findings suggest that managerial overconfidence can lead to an increase in firm value, and this relationship is significantly influenced by operating cash flow and tax aggressiveness.
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