Petroleum University of Technology Petroleum Business Review 2645-4726 2 3 2018 09 01 The Moderating Effect of Firm Value and liquidity on the relationship between Managerial Overconfidence and R and D 40 46 93426 10.22050/pbr.2018.93426 EN Ali Najafi Moghaddam Assistant professor, Management and Accounting Department, Islamic Azad University, South Branch, Tehran, Iran Manijeh Ramsheh Assistant Professor, Department of Accounting,Faculty of Management, University of Qom, Qom Journal Article 2018 06 03 Overconfident managers, who tend to overestimate their capabilities, underestimate the possibility and impact of side effects in projects. The purpose of this study is to review the effect of managerial overconfidence on research and development expenditures and the moderating effect of firm value and liquidity on this relationship. For this purpose 51 companies were chosen from oil/gas, and petrochemical Companies listed on the Tehran Stock Exchange over the period 2012-2017. This research, within three basic hypotheses, is analyzed by Eviews software and shows that managerial overconfidence has positive effect on research and development. Company liquidity has direct effect on relationship between managerial overconfidence and R&D, but firm value has no meaningful effect on the relationship between managerial overconfidence and R&D.<br /> <strong>Keywords</strong>: managerial overconfidence, R&D, liquidity, firm value https://pbr.put.ac.ir/article_93426_95ec542f0dcae37a45422236452db6fe.pdf