The Research On The Market Competition,managers Overconfidence And Enterprise Innovation

On the background of popular business and peoples innovation, increase the innovation of the enterprise investment, improve the technological content of products is one important way of enterprise transformation and upgrading. But at present, some enterprise innovation investment level is not high, still kept the development way of resource inputs. One of the important factors is the enterprise macro market competition environment. The market competition environment affects the judgment about the benefits and risks of innovation, thus influence enterprise’s innovation investment. Another important factor is the microscopic heterogeneity of the enterprise, different managers have different innovation investment decision, especially when managers are overconfidence.Academia also take many research on innovation, but few research the relationship of the market competition, managers overconfidence and enterprises innovation investment.Therefore, as an opportunity, based on the research paradigm of "environment- individual- process", we select the A-share listed companies data in 2007-2014 as a sample, to study the relationship between market competition, managers overconfidence and enterprise innovation. Further, we analysis the effect of managers overconfidence on enterprise innovation investment when in the different market competition environment.The empirical results show that: first, the relationship between market competition and enterprise innovation investment is a inverted U type of relationship, namely, along with market competition intensifying, the innovation of the enterprise investment will continue to increase, but when the intensity of market competition over a certain critical value, enterprise innovation investment will decline with the competition. Second,managers overconfidence can promote enterprise innovation investment. Further, by comparing the different levels of market competition environment, we found that under the high market competition environment, managers overconfidence can give innovation more power. Third, with the development of managers overconfidence, market competition and enterprise innovation investment inverted U type relations become more steep.