The Influence Of Executive Overconfidence On Corporate Strategic Change Mechanism Research

Economic globalization has deepened the intensity of competition among countries.Under this background,adjusting the business strategy has become a key decision for enterprises to maintain their original advantages,form new advantages,and win market positions.Changing business strategies based on market conditions can effectively help companies cope with the risks that come with them,but not all changes will have a positive impact on the business,and a little carelessness may have the opposite effect.So how can we guarantee that the strategic change plan formulated by the enterprise is suitable for the development requirements of the enterprise? In the long run,the over-confidence of senior managers who are the main decision-makers of strategic change,play a vital role in the decision-making process of strategic change.However,strategic change depends not only on the overconfident behavior of executives,but also on the social capital accumulated by executives.In addition,the risk-taking ability in enterprise investment decision-making has an important impact on the long-term development of enterprises.Based on this,this paper focuses on the core proposition of how corporate executives' overconfidence drives corporate strategic change.We take the senior executive social capital and corporate risk-taking ability as the starting point to explore the regulatory role of senior executive social capital in the relationship between overconfidence and corporate strategic change,as well as the intermediary role of corporate risk-taking ability in the relationship between senior executive overconfidence and corporate strategic change.Firstly,on the basis of literature review and summary,combined with the actual situation of Chinese enterprises,this paper puts forward the hypothesis of this study,and constructs the theoretical models of "executive overconfidence-social capital-corporate strategic change" and "executive overconfidence-corporate risk-taking ability-corporate strategic change".Secondly,taking the data of A-share listed companies from 2009 to 2018 as the research object,the hypothesis is tested one by one through multiple regression analysis.The conclusion is drawn that executive overconfidence has a significant negative impact on corporate strategic change.The impact of executive social capital on corporate strategic change is not significant.Executive social capital will inhibit the negative correlation between executive overconfidence and corporate strategic change.Excessive self-confidence of executives can reduce a company's risk-taking ability.Enterprise risk-taking ability has a significant positive impact on corporate strategic change.Corporate risk-taking capacity plays a mediating role between executive overconfidence and corporate strategic change.The research conclusions not only verify the influence mechanism of corporate executive overconfidence on corporate strategic change,but also promote and enrich the related theories of social capital,enterprise risk-taking,corporate strategic change,and provide theoretical guidance for corporate practitioners to make strategic change decisions.