Managerial Overconfidence and Income Smoothing ​​​​

The 80th National Convention of the Japan Accounting Association

The purpose of this study is to quantitatively clarify the effect of the personal characteristic of overconfidence of management on the degree of income smoothing and its informativeness. As a result of the verification, it was observed that overconfident managers make profit adjustments intended for income smoothing based on an optimistic outlook for future business results, but the degree of income smoothing decreases.