CEO Overconfidence And Corporate Innovation

With the acceleration of industrialization and informationization, and more focus on the quality of economic growth under China's new normal economy, technical innovation's core position in the economic growth and international competition has been increasingly highlighted. Meanwhile,technological innovation is also a key factor for more than 20 million enterprises to maintain their development. Starting from the perspective of psychological characteristics of entrepreneurs, and in the framework of corporate governance, we study the influence of CEO's overconfidence on the corporate innovation. Selecting the listed companies from 2006 to 2010 as the research object,this paper shows that CEO's overconfidence has exercised a great influence on corporate innovation,but in case of higher ownership concentration and stock price synchronicity,the correlation between CEO's overconfidence and corporate innovation will be reduced significantly. Our research provides evidence for corporate innovation theory from the perspective of behavioral economics,and policy suggestion for regulatory authority,which is focusing on training administrative talents in the process of corporate innovation strategy.