TY - JOUR ID - 54969 TI - The effect of managerial overconfidence on the conservatism with respect to the role of external monitoring JO - Accounting and Auditing Review JA - ACCTGREV LA - en SN - 2645-8020 AU - Khodamipour, Ahmad AU - Dorri Sedeh, Mostafa AU - Pouresmaily, Azadeh AD - Associate Prof., Faculty of Management and Economics, Shahid Bahonar University, Kerman, Iran AD - Ph.D Student of Accounting, Faculty of Administrative Sciences and Economics, University of Isfahan, Isfahan, Iran AD - MSc., Faculty of Administrative Sciences and Economics, Vali-e-Asr University, Rafsanjan, Iran Y1 - 2015 PY - 2015 VL - 22 IS - 2 SP - 183 EP - 202 KW - conditional conservatism KW - External Monitoring KW - managerial overconfidence KW - unconditional conservatism DO - 10.22059/acctgrev.2015.54969 N2 - This study investigates the effect of managerial overconfidence on  both conditional and unconditional conservatism considering the role of external monitoring. Data is collected from a sample of 197 firms listed in Tehran Stock Exchange over the period 2004 to 2012. Two measures are used for managerial overconfidence: excess asset growth and debt to equity ratio above the industry median. Unconditional conservatism is measured using an accrual-based measure and the difference between cash flow skewness and earnings skewness (Givoly and Hayn [2000]). Conditional conservatism is measured using Basu’s [1997] asymmetric timeliness measure. The findings indicate that both of managerial overconfidence measures have a significant negative effect on both conditional and unconditional conservatism. In addition, the results indicate that external monitoring significantly mitigates the effect of managerial overconfidence on unconditional conservatism. UR - https://acctgrev.ut.ac.ir/article_54969.html L1 - https://acctgrev.ut.ac.ir/article_54969_79b062640e5e53ff524b897e924c2237.pdf ER -