The Effect of Managerial Overconfidence on Cash Holdings with the Moderating Role of Product Market Competition in Companies
Keywords:
cash holdings, managerial overconfidence, product market competitionAbstract
The main objective of the present study is to examine the effect of managerial overconfidence on cash holdings with the moderating role of product market competition in companies listed on the Tehran Stock Exchange. The statistical population of the study includes companies listed on the Tehran Stock Exchange. Accordingly, a sample of 140 companies, comprising 700 firm-year observations, was selected from the statistical population for the period from 2019 to 2023 by applying certain restrictions. The required data were collected and tested using linear regression. The relationships among the research variables were analyzed using panel data, fixed effects, and the generalized least squares method through EViews 12 software. The results indicate that there is a significant negative relationship between managerial overconfidence and corporate cash holdings, and that product market competition positively moderates the relationship between managerial overconfidence and cash holdings.
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