The effect of political connections on the relationship between ownership structure and managerial optimism

Management optimism is one of the most prominent biases that influence management decisions. The purpose of this study is to investigate the effect of political connection on the relationship between ownership structure and managerial optimism. The statistical population of the study is all companies listed on the Tehran Stock Exchange and using the systematic elimination sampling method, 146 companies were selected as the sample of the research in an 8-year period between 2013 to 2020. The method used to collect information is a library and the relevant data for measuring variables were collected from Codal website and companies ’ financial statements and then Eviews software was used to test the research hypotheses. The results of testing the research hypotheses showed that there is a negative and significant relationship between ownership structure (institutional and family ownership) and managerial optimism; But political connections do not affect the relationship between ownership structure (institutional and family ownership) and managerial optimism.