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Financial Risk and Management Reviews

June 2016, Volume 2, 1, pp 26-42

The Indirect Impact of Overconfidence on the Performance of Tunisian Firms Through their Financing Structure

Manel Dahmani


Ghazi Zouari

Manel Dahmani 1

Ghazi Zouari 2

  1. PHD, Student in Financial and Accounting Methods: LARTIGE, FSEG, University of Sfax, Tunisia 1

  2. Associate Professor in Financial and Accounting Methods: LARTIGE, FSEG, University of Sfax & FARGO, IAE Dijon, France 2

Pages: 26-42

DOI: 10.18488/journal.89/2016.2.1/

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In the current framework of behavioral corporate finance, this article studies the relationship between the managers’ overconfidence and firm performance through the financing structure in the Tunisian context. Our model seeks to identify if the financing structure as a mediating variable between the performance and overconfidence. The empirical study is based on a sample of 56 firm managers for the year 2014. The results of the conducted regressions confirm the existence of a mediating effect of the financing structure on the relationship between overconfidence and the performance of Tunisian firms.

Contribution/ Originality
This study is one of the few studies which have investigated the indirect impact of overconfidence on the performance of Tunisian firms through their financing structure; it is based on a new methodology that uses the theory of Baron and Kenny (1986) by utilising mediating variables to assess the relationship between the firm’s overconfidence and performance.


Overconfidence, Financing structure, Firm’s performance.



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This study received no specific financial support.

Competing Interests:

The authors declare that they have no competing interests.


All authors contributed equally to the conception and design of the study.

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