Manager Overconfidence,Corporate Governance And Enterprise Innovation

At present,China's economy is already in the stage of transformation and upgrading,and innovation activities are becoming more and more important.As the main carrier of national innovation,enterprises are particularly important for the country's innovation activities.When it comes to enterprise innovation,people often think of the innovation of mature large-scale enterprises,but they ignore the innovation pressures and demands that small-scale enterprises have just set up.Even the enterprises that are gradually declining have innovative needs and motivations.With the need of reality,more and more literatures in the academic world research on the factors of enterprise innovation.The main factor for making innovative decisions in enterprises is managers.Most of the current literatures believe that overconfident managers are good for enterprise innovation.However,companies will be at different stages,so it is worthwhile to study whether overconfident managers are beneficial to enterprise innovation at all stages.In addition to managers,corporate governance is also important for the innovation and development of enterprises.The enterprises at each stage have different characteristics,and the corporate governance methods that need to promote corporate innovation activities may be different.Managers and corporate governance work together on the day-to-day management activities of enterprises,but at the same time,different corporate governance situations will also affect the status and discourse power of managers in the company's business decision-making,which in turn affects the innovation and development of enterprises.What kind of regulation does governance have on the impact of overconfident managers on business innovation? Therefore,this paper starts the research on the enterprises at different stages.This paper first introduces related research literatures at home and abroad,explains related problems according to life cycle theory,principal-agent theory,free cash flow theory,and proposes research hypotheses and empirical models.Finally,using Tobit model and multiple regression models for empirical analysis.When the literature studies similar problems,most of them start from the static level of enterprise nature or industry difference.This paper studies these issues from the perspective of enterprise dynamic development,and studies the influence of manager's overconfidence and corporate governance on enterprise innovation through the perspective of enterprise life cycle.These will be rich in relevant theoretical research.Through the analysis of the empirical results,this paper finds that overconfident managers have a significant positive impact on corporate innovation during the growth and maturity period,but have no impact during the recession.The incentive mechanism in corporate governance is conducive to enterprise innovation.The supervision mechanism can be beneficial to enterprise innovation in the growth and maturity period.It is not conducive to enterprise innovation in the recession period.Institutional investors and an externally sound corporate governance environment are good for business innovation at all stages.Overall,the impact of corporate governance on managers' overconfidence that affects on corporate innovation cannot be effectively regulated.Finally,this paper puts forward relevant policy recommendations for enterprises at different life cycle stages from the perspective of managers,corporate governance and government.