Note(s): Table 7 shows the PSM and IV test results in which the nature of properties and market share serve instruments for research main Overconfidence measure. where Overconfidence and Acc_Competence are proxy of managerial overconfidence and managerial accounting competence, respectively. The firm size (Size) is the natural log of total assets’ book value, market to book ratio (MTB) is the market value to book value of firm’s total assets, leverage (Lev) is total debts divided by total assets, institutional ownership (Inst) is the sum of institutional ownership’ percentage, managerial ownership (Mgt) is the percentage of the shares owned by the managers, board size (B_size) is the number of the board of directors, board independence (B_Ind) is the independent directors divided by the total number of the board of directors and ROA is the income before extraordinary items scaled by lagged total assets. LOSS is an indicator variable equal to one for firm-years with negative income before extraordinary items of t and t−1 years, otherwise zero. Ret_Std is the standard deviation of stock returns over the three past years. Cfo_Std is the standard deviation of operating cash flow over the three past years. The standard deviation of profitability changes over three years is used to measure environmental uncertainty (VIX). ***, ** and * indicate statistical significance at the 0.01, 0.05, and 0.10 levels, respectively

Source(s): Author’s own work