The Effect of Optimism and Riskseeking Level of Managers on Investment Selling Decisions with Emphasis on Fair Value Accounting

The purpose of this study was to investigate the effect of managers' optimism and riskseeking level on investment selling decisions with emphasis on fair value accounting. The requirement to apply International Financial Reporting Standards and third-level discretion of fair value requires to review the behavior of managers regarding the effect of the level of optimism and their riskseeking on the investment selling decisions based on fair value. The research method is applied in terms of the target, analytical of the kind of quasi-experimental in terms of the nature and survey in terms of data collection method. The statistical population consists of all active financial analysts in the capital market and statistical sample includes 268 financial analysts which were selected by targeted sampling method. The period of research is 2018. To collect data, we were used a questionnaire based on the scenario. The results of this study showed that the level of optimism and riskseeking of managers does not have a significant effect on the investment selling decisions based on fair value. the level of conservatism applied to the assessment of fair value affects investment selling decisions, but the level of fair value volatility does not affect the decisions made. In addition, the level of optimism and riskseeking of managers does not affect the relationship between the level of conservatism and fair value volatility with investment selling decisions.