Management Overconfidence,R&D Spending And Stock Price Crash Risk

On January 25,2022,the Chinese Academy of Social Sciences financial research institute published the financial risk report 2021 pointed out that China’s overall financial risk in a controllable scope,but there is still a potential risk,compared to last year,at present,the degree of financial market volatility eased,but based on volatility,stock market is facing high risk.Due to the unprecedented changes and the crossimpact of the epidemic,the uncertainty of market operation has increased and stock price crash events have occurred frequently.The risk of stock price crash has also become the focus of academic research.Do managers,who take on the role of decisionmakers in public companies,have an impact on the collapse of a company’s share price?What is the impact? Based on this,from the perspective of the psychological characteristics of THE CEOS of A-share listed companies in Shanghai and Shenzhen,the impact on stock price collapse is explored.With the increasingly fierce market competition,consumers demand higher and higher quality of products and services.In order to enhance core competitiveness,enterprises have R&D demands.However,due to the professionalism,concealing and high risk of R&D activities,stock prices are likely to fluctuate.At the same time,managers who show overconfidence will also affect the company’s R&D decisions and investment.Then,what is the interdependent relationship among the three? Therefore,it is necessary to bring the three into the same research framework,put forward creative hypotheses based.This paper firstly combs the relevant literature on management overconfidence,R&D investment and stock price crash risk,and then specifically combs the relevant literature on exploring the relationship between the two,and makes an overall general evaluation.Then,based on the principal-agent theory,asymmetric information theory to explore the management overconfidence,R&D investment and stock price crash risk between the dependence of potential,creatively put forward the article hypothesis,and selected 2010-2020 Shanghai and Shen Zhen a-share listed companies as research samples,under the condition of control A variety of factors affecting the empirical test using regression model,And detailed report,analysis of empirical results.In order to ensure the robustness of the empirical results,the hypothesis of the paper was supported again by replacing the main variables and endogeneity test.Finally,other internal factors that may influence the relationship between management overconfidence and stock price crash risk are further explored.The results show that :(1)management overconfidence increases the risk of stock price crash of listed companies.(2)Overconfident management will increase R&D investment of listed companies.(3)R&D investment of listed companies will increase the risk of stock price collapse.(4)R&D investment of listed companies plays an intermediary role in the relationship between management overconfidence and stock price collapse.(5)High-quality internal control and state-owned property rights can weaken the negative impact of management overconfidence on the risk of stock price crash.Finally,from the institutional management of listed companies,external supervision and capital market and other aspects of the regulation of corporate information disclosure,improve the internal control mechanism of listed companies,establish and improve the management selection,training and evaluation mechanism,establish effective capital market and other suggestions.on existing theories and experience,and carry out in-depth theoretical analysis.