In light of the representation of financial reports, the main source of investors' information when making their decisions, the quality of that information in the financial markets has become a necessity for making decisions, which met with the phenomenon of financial restatements, which may indicate misleading financial statements if used over and over to correct the previous financial statements. Many of the accounting literature interesting, especially after the occurrence of many of the financial crisis, which has created a kind of weak confidence in financial disclosures on the part of investors, so some studies have focused on the specific factors of this phenomenon or not, which results are varied about managerial overconfidence which is considered one of those factors, which obliged the researcher not only to test managerial overconfidence as one of those determinants, but also to research some of the coordinating factors that would influence that relationship or not. The current research suggested (corporate governance, and the coverage of analysts as two oversight tools in this regard, in addition to the managerial ability as one of the variables indicating the efficiency of executives) as moderating variables that can change the impact of managerial overconfidence on restatements of financial statements. By using the "Binary Logistic Regressions" method and with the division of corporate governance into several sub-axes, as indicated by the Egyptian guide, embodied by this indicator (samman, 2018), and by using the model (Demerjian et al., 2012) for the quantitative expression of the variable of managerial ability, and by adopting 60 companies representing the Egyptian corporate community, during the period 2009-2017; The research found the sincerity of the interaction of corporate governance and managerial overconfidence in limiting the restatements of the financial statements, and the lack of significance of financial analysts' coverage and the managerial ability as two moderating variables for this relationship, which means the necessity of referring to the basic effect of the interacting variables, which shows the lack of significance of coverage, and the significance of the managerial ability to influence the restatements of the financial statements, to confirm this ineffectiveness of coverage as a control variable in the Egyptian environment; Governance is statistically the most prominent as a moderator of the desired relationship.
In light of the adoption of many administrative decisions in the financial markets on the extent to which managers understand the behavior of the cost of their companies, and what this behavior represents is an important criterion for the quality of those decisions, where the proper appreciation of them contributes to taking many relevant decisions such as product decisions, planning and control processes, which reflected positively on the competitiveness of the company, the present research uses (Anderson et al., 2003) model as a first objective to determine the nature of actual cost behavior in the Egyptian market as a pioneering model in this field; as a second objective to test the extent of the existence of variation in the nature of this behavior in the periods of financial and political crises, as a third objective and the last one to test the effect of managerial overconfidence as one of the important determinants of this behavior in light of the positive role of executives in the formulation of many of the policies and strategic options; the current research relies on two regression equations, the first of which represents the cost of goods sold, while operational expenses represent the second, and by relying on 125 companies representing the Egyptian corporate community, distributed over various sectors, during the period 1999-2017, which were divided into four basic periods, the first of which: before the period of the crisis, the second: during the financial crisis, the third: during the political crisis, and the most recent: after recovering from crises. With the use of the "Random Effect Model" for the two research equations in different periods, the results of statistical tests in this regard indicated that the research has found the significance of the variable for the asymmetric behavior of both types (cost of sold goods and operating expenses) in the two stability periods, so that the two rates of their decline associated with the decrease in volume of activity are less than the two rates of increase associated with increasing the volume of activity with the same rate of decrease, meaning that they have stickiness, whereas the same variable is characterized by weakness for both types in the period of the financial crisis, and for operational expenses in the period of the political crisis, with the proper significance of the cost model of goods sold in the period of political crisis and the researcher observed with it there is a decline in the percentage of stickiness of the cost of the sold goods compared to its percentage in the two stability periods, this means that the results of the two periods of the crisis are different compared to the results of the two periods of stability and then the directors 'decisions regarding modifying resources are affected as the volume of activity changes with the financial and political crises. Finally, the research has reached the significance of the effect of managerial overconfidence on the inconsistency of the cost of the goods sold and operating expenses ...
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
hi@scite.ai
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
Copyright © 2024 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.