Research On The Relationship Between Managerial Overconfidence And R&D Investment

Innovation is the driving force of the growth and development of enterprises,Research and Development activities,as an important part of business activities,are important way to improve the innovation capability of enterprises.At present,the research on R&D investment is mainly based on the "rational-economic man"hypothesis.However,as the maker of investment decision,the irrational behavior,especially the overconfidence,has an important influence on R&D activities of enterprises.Therefore,Based on the data of A-share listed companies in Shanghai and Shenzhen from 2012 to 2016,this paper firstly verifies the relationship between Managerial Overconfidence and R&D investment,and then analyzes the relationship between Managerial Overconfidence and R&D investment from two aspects of property right nature and the Board governance.We hope to make a reasonable employment system for the enterprises.It also finds a new way to better play the regulatory roles of property right nature and corporate board governance.This article mainly studies from the following parts:The first chapter is the introduction.It includes the introduction of research background and significance,then describes the research method and purpose of this paper,and uses the frame diagram to explain the structure of this paper,and finally describes the possible innovation.The second chapter is literature review.This paper reviews the literature on the relationship between managerial overconfidence,Managerial Overconfidence and R&D investment,the nature of property rights,and the impact of Board Governance on the relationship between them.The third chapter is the theoretical basis and research assumptions.Firstly,this paper defines the core concepts,then introduces the relevant theoretical basis,and finally derives the hypothesis of this study.The fourth chapter is research design.This paper mainly elaborates the sample source and data selection,as well as the variables that need to be controlled in the research process,and designs the model used in this study.The fifth chapter is empirical test and result analysis.On the basis of data processing and screening,descriptive statistics and analysis of samples are carried out;correlation among variables is analyzed to eliminate the multiple collinearity problem;finally,the model is regression,and the robustness test is carried out by replacing the measurement method of managers' overconfidence.The sixth chapter is the conclusions and recommendations.First,draw a conclusion based on the above contents.Then,it puts forward some suggestions on how to take managerial overconfidence as a consideration factor and how to improve the property rights and board governance mechanism when employing suitable talents.Finally,the shortcomings and further research directions of this paper are discussed.The conclusion is that the coefficient between Managerial Overconfidence and R&D investment is significantly positive,indicating that managerial overconfidence can promote R&D investment.Then we add the nature of property rights and board governance to conduct in-depth study and find that,compared with private enterprises,the overconfidence of state-owned enterprise managers has a more obvious role in promoting R&D investment;from the perspective of board governance,we find that board diligence has a negative moderating effect on R&D investment;chairman and general manager of the board of directors have two positions in one.The independent director system has no obvious effect on the regulation of R&D investment.The innovations of this paper include:considering the nature of property rights and board governance,exploring the relationship between Managerial Overconfidence and R&D investment,the research conclusion is more consistent with the actual situation of Chinese enterprises.In addition,board governance includes three indicators:diligence of the board of directors,the proportion of independent directors,the integration of chairman and general manager,which are analyzed separately to supplement the relevant research.