경영자의 과신성향이 이익조정에 미치는 영향：투자효율성의 조절효과

[Purpose] This study aims to examine the relationship between CEO’s overconfidence tendency and corporate earnings management and to verify the moderating effect of investment efficiency. The higher the investment efficiency of a company, the more CEO’s hide the adverse decision－making results caused by the tendency to overconfidence and check whether they suppress upward earning management to improve performance. [Methodology] This study constructed a sample of non－financial listed companies on the KOSPI and KOSDAQ from 2003 to 2019. After considering the control variables for these samples, the moderating effect was analyzed through multiple regression analysis. [Findings] The summary of the research results of this study is as follows. First, it was found that the stronger the CEO’s overconfidence tendency, the higher the earnings management. Second, it was found that the higher the investment efficiency of a company, the lower the upward earnings management due to the CEO’s overconfidence tendency. [Policy Implications] This study found that domestic companies with strong CEO’s overconfidence tendencies adjust their profits with opportunistic intentions to hide the company’s poor performance caused by overconfidence tendencies. But, the higher the investment efficiency of a company, the more likely it is to have a system to manage the potential and negative effects of CEO’s overconfidence by supporting thorough analysis.