<![CDATA[This study investigates the effect of managerial overconfidence on the decline in financial reporting quality (FRQ). Managerial overconfidence is a psychological bias that affects future company performance, leading to irrational expectations and decision-making. Therefore, managers manage earnings and make financial reporting not represent the situation. This study highlights the gap in the behavioral literature by examining the cognitive biases of managers in developing countries that are full of uncertainty regarding the company’s future strategic decision-making. This study employs a purposive sampling method, focusing on a sample of manufacturing companies from developing Southeast Asian countries, with a 10-year observation period from 2011 to 2021. The total sample comprises 6,800 company observations, with data collected from the Bureau Van Dijk and Refinitiv Thomson Reuters databases. This study employs ordinary least squares (OLS) regression to test all hypotheses. These findings show that in developing countries, managers tend to exhibit opportunistic behavior by accepting the attribution of past financial results without rational thinking. This study contributes to the broader behavioral accounting literature by examining managerial psychological biases that influence future-oriented judgments and financial reporting quality in developing countries and highlighting the importance of behavioral factors in strategic decision-making.]]>
Copyrights © 2026
