Abstract:

Abstract Several studies have suggested that overconfidence leads to expectations of future performance, and managers can develop predisposition to earnings management. The objective of the study is to identify the influence of overconfident managers on Brazilian companies’ earning management practices. The methodology of the research is descriptive, with quantitative approach, through documentary research. The statistical methods used were: entropy, TOPSIS and multiple linear regression. The sample consisted of 127 Brazilian companies listed on the BM&FBovespa. It is concluded that lower overconfidence has a positive impact on earnings management, suggesting that less confident managers believe with less intensity in their abilities, and, in order to guarantee organizational results that satisfy the expectations of analysts, they conduct the earnings management in an opportunistic way so as to increase organizational results. Author Biographies Cristian Bau Dal Magro, Universidade Regional de Blumenau Doctor in Accounting Sciences and Administration at Universidade Regional de Blumenau (FURB). Address: Servidão Anjo da Guarda, 295-D | Efapi | 89809-900 | Chapecó/SC | Brazil. Marcello Christiano Gorla, Universidade Regional de Blumenau Doctor in Accounting Sciences and Administration at Universidade Regional de Blumenau (FURB). Address: Rua Antônio da Veiga, 140 | Itoupava Seca | 89030-903 | Blumenau/SC | Brazil. Roberto Carlos Klann, Universidade Regional de Blumenau Doctor in Accounting Sciences and Administration at Universidade Regional de Blumenau (FURB). Professor in the Accounting Sciences Post-Graduation Program of FURB. Address: Rua Antônio da Veiga, 140 | Itoupava Seca | 89030-903 | Blumenau/SC | Brazil. References Ahmed, A. S., & Duellman, S. (2013). Managerial overconfidence and accounting conservatism. Journal of Accounting Research, 51(1), 1-30. DOI: https://doi.org/10.1111/j.1475-679X.2012.00467.x

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