| Summary: | <p style="text-align: left;"><strong>Purpose</strong>: One of the most important decisions that managers make during their tenure is determining the sources of financing required for investment projects. Due to the advantages and disadvantages of each financing source and the impact of company characteristics on company financing methods, determining the optimal financing mix is one of the most challenging decisions for managers.</p>
<p style="text-align: left;"><strong>Methodology</strong>: This study investigates the impact of board diversity on the relationship between managerial overconfidence and corporate financing. The statistical population of this research is the companies listed on the Tehran Stock Exchange during the period of 2015 to 2022. For this purpose, the information related to 105 companies have been selected as a statistical sample using the targeted elimination method. To test the research hypotheses, multivariate regression method was used.</p>
<p style="text-align: left;"><strong>Findings</strong>: The findings of this research show that there is a positive and significant relationship between managerial overconfidence and corporate financing decisions. Also, the gender diversity of board members weakens the positive relationship between managerial overconfidence and corporate financing decisions.</p>
<p style="text-align: left;"><strong>Originality:</strong> Managers with overconfidence tend to use more debt in the capital structure of their companies. This means that these managers are overconfident in their abilities to manage and make the company profitable, and as a result, instead of using internal resources or issuing new shares, they turn to borrowing and debt to secure financial resources.</p>
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