The moderating variables for the relationship between managerial overconfidence and restatement of financial statements (an empirical approach on Egyptian companies)

In light of the representation of financial reports, the main source of investors’ information when making their decisions, the quality of that information in the financial markets has become a necessity for making decisions, which met with the phenomenon of financial restatements, which may indicate misleading financial statements if used over and over to correct the previous financial statements. Many of the accounting literature interesting, especially after the occurrence of many of the financial crisis, which has created a kind of weak confidence in financial disclosures on the part of investors, so some studies have focused on the specific factors of this phenomenon or not, which results are varied about managerial overconfidence which is considered one of those factors, which obliged the researcher not only to test managerial overconfidence as one of those determinants, but also to research some of the coordinating factors that would influence that relationship or not. The current research suggested (corporate governance, and the coverage of analysts as two oversight tools in this regard, in addition to the managerial ability as one of the variables indicating the efficiency of executives) as moderating variables that can change the impact of managerial overconfidence on restatements of financial statements. By using the "Binary Logistic Regressions" method and with the division of corporate governance into several sub-axes, as indicated by the Egyptian guide, embodied by this indicator (samman, 2018), and by using the model (Demerjian et al., 2012) for the quantitative expression of the variable of managerial ability, and by adopting 60 companies representing the Egyptian corporate community, during the period 2009-2017; The research found the sincerity of the interaction of corporate governance and managerial overconfidence in limiting the restatements of the financial statements, and the lack of significance of financial analysts' coverage and the managerial ability as two moderating variables for this relationship, which means the necessity of referring to the basic effect of the interacting variables, which shows the lack of significance of coverage, and the significance of the managerial ability to influence the restatements of the financial statements, to confirm this ineffectiveness of coverage as a control variable in the Egyptian environment; Governance is statistically the most prominent as a moderator of the desired relationship.