An Empirical Study On The Influence Of Managerial Overconfidence On Enterprise R&D Activities

Under the background of our state vigorously promoting scientific and technological innovation, how to promote enterprise innovation has become a hot research topic in the academic field. From the perspective of corporate governance, corporate characteristics, external environment and other factors, domestic and foreign scholars have made a lot of research on the factors that influence the enterprise’s R&D activities. However, many researches have been based on the assumption of rational people, and ignored the objective reality of managers as the "limited rational economic activity participants". With the development of the theory of behavioral finance, the management of limited rationality, especially the influence of over confidence to the research and development activities of the enterprise has gradually become a hot research topic. However, it is obvious that the research enterprises are classified into homogeneous samples. is clearly not in line with the real economic activity, at the same time, few related research studythe invention patent as the economic consequences of corporate R&D. Therefore, based on the hypothesis of bounded rationality, the effect of overconfident managers on the intensity of R&D expenditure, R&D output(using patent) is the key point of this paper, deepening research with the introduction of enterprise scale and corporate liabilities two enterprise heterogeneity perspective.In this paper, select the Shanghai and Shenzhen A shares of listing corporations as a research sample, which is in the database of the Ministry of Science and Technology. Choosing appropriate measurement model, using multiple regression method, Has studied the influence of enterprise’s development activities from the perspective of enterprise homogeneity and heterogeneity. Research results show that,when innovation spending unchanged, from the perspective of enterprise homogeneous, managerial overconfidence has a significant role in promoting enterprise innovation activities; From the perspective of enterprise heterogeneity, there is a significant difference in this promotion effect under the condition of different scale and financial constraints. On the scale of enterprises: overconfident managers in large scale enterprises can promote enterprise R&D activities much more. As far as financial constraints are concerned: compared to the financial expansion enterprises, the promotion of enterprise innovation activities by overconfident managers in non-financial expanding enterprises is more obvious. The conclusion of this paper can verify Schumpeter hypothesis and investment distortion hypothesis in the literature, and expand the existing linear analysis model in theory. The research shows that the heterogeneity of enterprises is an important decision making situation that affects overconfident managers to make R&D decisions. At the same time, it should be a comprehensive and objective understanding of the advantages and disadvantages of the overconfident managers to the enterprise, although there are studies that overconfident managers will lead to financial mistakes, resulting in the destruction of the value of the enterprise, but the more entrepreneurial spirit of overconfident executive is also a powerful promoter of corporate innovation activities, will promote the upgrading of enterprise R&D activities under certain conditions.In summary, as the formulation and implementation of enterprise strategy, managers’ irrational behavior will inevitably affect the economic activities of enterprises. Therefore, from the perspective of behavioral corporate finance theory, the study of managerial overconfidence in corporate R&D activities has important theoretical significance and practical significance.