Examine the effect of CEO optimism on Investment Sensitivity to Cash Flows: Evidence from Tehran Stock Exchange

International Journal of Economics and Management Studies

© 2016 by SSRG - IJEMS Journal

Volume 3 Issue 3

Year of Publication : 2016

Authors : MostafaPahlavan, Mehdi Dehghan

10.14445/23939125/IJEMS-V3I3P105

How to Cite?

MostafaPahlavan, Mehdi Dehghan, "Examine the effect of CEO optimism on Investment Sensitivity to Cash Flows: Evidence from Tehran Stock Exchange," SSRG International Journal of Economics and Management Studies, vol. 3,  no. 3, pp. 1-14, 2016. Crossref, https://doi.org/10.14445/23939125/IJEMS-V3I3P105

Abstract:

Personal characteristics of management represent one of the factors affecting the company performance and reporting. Effects of management characteristics on different issues have been discussed in many researches. The characteristics are further affected by various factors. As management characteristics, CEO optimism (overconfidence) can be associated with various consequences. One of the potential effects of personal characteristics of management is its impact on investment sensitivity to cash flow which is addressed in the present research where the subject is investigated during 2009-2013 period. The results indicated that, there is a significant association between CEO optimism and investment sensitivity to cash flow.

Keywords:

Management optimism, overconfidence, investment sensitivity to cash flows.

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