التحفظ المحاسبي و الثقة الإدارية الزائدة و آداء الشركة خلال جائحة كورونا : دور هيكل رأس المال

Abstract EN

This study aims to analyze the interaction between the financial reporting, management characteristics and financial decisions, and the role and importance of each of them in determining the firm's performance under the conditions of financial crises and market uncertainty, providing a more in-depth and clear vision about the determinants of firms' behavior and performance during crises.

The study examines the effect of the level of conservatism in the financial statements and the CEO's overconfidence and the interaction between them on the firm's performance during the Corona pandemic in the Saudi business environment, in addition to analyzing whether the corporate capital structure affects those relationships.

The results of the study greatly emphasize the importance and role of the conservative financial reporting in a time of crisis, as the level of conservatism positively affects the financial performance and mitigates the negative impact of overconfidence and supports its positive impact, as the interaction between conservatism and overconfidence positively affects performance.

In addition, the results show an important role for the capital structure, as they showed that the rate of leverage affects the financial performance, and it also affects - to a large extent - the relationships between conservatism, overconfidence, and financial performance.

In general, the results indicate that the CEO's overconfidence and the higher rate of debt in the capital structure negatively influence the corporate business environment, and that the conservative financial reporting helps mitigate that negative impact.

These results draw attention to the importance of accounting conservatism in the context of the financial reporting environment, and they direct the business environment to the importance of financial decisions such as the capital structure for the corporate performance.