Executives' Overseas Experience,overconfidence And R&D Investment

Numerous practices show that innovation driven development strategy is the key to promote the high level development of China's market economy.As the main body of market economy,enterprise innovation is undoubtedly the key.As the core link of enterprise innovation,R&D investment should be valued by enterprises.However,as we all know,the characteristics of R&D investment,such as high risk,high investment and the lag of revenue,make it difficult for enterprises to have enough power to invest in R&D.In recent years,the formation of the "wave of returnees" has undoubtedly injected new vitality into the executive team.The spirit and environment of openness,inclusiveness and adventure must have an impact on executives and their r&d investment decisions.Therefore,studying the impact of executives with overseas experience on r&d investment is very important.The research sample of this article is selected from A-share manufacturing listed companies in Shanghai and Shenzhen in 2009-2017.It mainly explores the impact of executives' overseas experience on enterprises' r&d investment.The paper also discusses the action path based on the behavioral finance theory,high order management theory and branding theory.It also introduces the variable of overconfidence of executives and probes into the mediating effect and mechanism of overconfidence of executives.At the same time,It further investigates whether the types of overseas experience of executives,the property right nature of enterprises and the nature of the industry will have an impact on the overseas experience of executives and the r&d investment of enterprises.The findings are as follows:(1)the overseas experience of executives significantly increased the r&d investment of enterprises,and the overconfidence of executives played an intermediary role;(2)executives who have both overseas work experience and education experience have the largest promoting effect on the r&d investment of enterp rises,followed by the overseas work experience of executives,but the overseas education experience is not significant;(3)compared with private enterprises,the overseas experience of executives in state-owned enterprises can have more advantages and promote the r&d investment of enterprises;(4)compared with non-high-tech enterprises,high-tech enterprises have a good innovation atmosphere,which enables overseas returnees' executives to have more advantages and promote the r&d investment.Compared with previous literature on r&d investment,this paper studies the impact of overseas experience of executives on enterprise r&d investment from the perspective of overseas experience of executives,keeping up with the trend of The Times and adapting to the current "tide of returnees" environment and general trend.In the study of the mechanism of overseas experience of executives to enterprise r&d investment,the irrational factor of overconfidence of executives is introduced.Starting from the behavioral decision of executives will enrich the research in related fields.