Technological Innovation Investment,Managerial Overconfidence And Corporate Performance

The impact of innovation on corporate value has long been widely concerned by enterprises and scholars.Especially in the macro background of Chinese continuous deepening reform and implementation of innovation and development strategies,the leading role of technological innovation in economic development has become increasingly prominent.Throughout the study of scholars at home and abroad,we eould easily find that the existing literature has differences in the impact of technological innovation investment on corporate performance,and most of the literature in the study assumes that managers are rational decision makers.With the continuous development of behavioral finance,the basic assumptions of "rational economic man" in traditional theory can no longer meet the needs of practice.Managers' choice of business decision-making behavior will be directly affected by their own psychological characteristics.The company's R&D and innovation activities,as an important part of the company,s financial decision-making,will inevitably be affected by the personal characteristics of management personnel,including personality and psychological factors,affecting the contribution of technological innovation investment to corporate performance.At present,Chinese enterprises are in a critical period of transformation and upgrading.How to use the positive influence of managerial overconfidence to improve their independent innovation ability has become the focus of social attention.Therefore,this paper will explore the relationship between technological innovation investment and corporate performance under the characteristics of manager overconfidence.This paper selects the experience data of A-share listed companies firom 2007 to 2017,empirically analyzes the relationship between enterprise technology innovation investment and enterprise performance,and explores the dififerences.between the two factors under different lag periods.On this basis,through the construction of multiple regression model,The empirical test examines the relationship between technological innovation investment and firm performance and the inherent influence of managerial overconfidence on the relationship between technological innovation investment and firm performance.The conclusions are as follows:(1)The investment of technological innovation plays a considerable part in promoting business performance;(2)there is a significant lag effect in the aspect of time between the technological innovation investment and the firm performance;(3)under other conditions,managerial overconfidence has a significant positive adjustment effect on technological innovation investment and corporate performance.This shows that managerial overconfidence enhances the effect of technological innovation investment on corporate performance to a certain extent.Based on the above empirical research results,this paper proposes that the government should take measures to encourage enterprises to research and develop innovation;enterprises in the innovation activities and corporate governance should think of managerial overconfidence psychology,formulate a more robust personnel selection mechanism and other policy recommendations.Through the research perspective of behavioral finance,this paper enriches the relevant content of innovation input value research and overconfidence research,provides theoretical support for enterprise technology innovation investment decision-making,and has important practical enlightenment for company innovation investment activities.