Language:

CEO's Overconfidence, Cost stickiness, and Value Relevance of Accounting Information

Iranian journal of accounting, auditing & finance (Online), 2020-08, Vol.4 (3), p.49-59 [Peer Reviewed Journal]

Full text available

Citations Cited by

Title:
CEO's Overconfidence, Cost stickiness, and Value Relevance of Accounting Information
Author: Reza Abdolahnezhad Khalil Abad
Subjects: ceo overconfidence ; cost stickiness ; stock price ; value relevance
Is Part Of: Iranian journal of accounting, auditing & finance (Online), 2020-08, Vol.4 (3), p.49-59
Description: CEO's overconfidence is one of the essential indices that influences financial policies. When sales decline, overconfident CEOs have overconfidence in their ability to bring sales back to the previous level and tend to overestimate sales, thereby increasing cost stickiness. Further, cost stickiness by manipulating the natural and expected costs process can affect accounting information content. Therefore, the CEO's overconfidence by influencing cost stickiness can also affect the value relevance. This paper shows that there is a positive and significant relationship between overconfidence and cost stickiness. There is also a negative and significant relationship between overconfidence and value relevance. Nevertheless, the effect of overconfidence through cost stickiness on value relevance is not confirmed.
Publisher: Ferdowsi University of Mashhad
Language: English
Identifier: ISSN: 2717-4131
EISSN: 2588-6142
DOI: 10.22067/ijaaf.2020.39427
Source: DOAJ Directory of Open Access Journals

Back to results list


INSPIRE LIBRARY - TON DUC THANG UNIVERSITY	(84-028) 37 755 057	Feedback
19 Nguyen Huu Tho St. Dist.7, HCM	thuvien@tdtu.edu.vn	Feedback

Searching Remote Databases, Please Wait