The relationship between managerial overconfidence and technological innovation investment

Wang Shanhui; Wang Zongjun; Tian Yuan

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Science Research Management ›› 2013, Vol. 34 ›› Issue (5) : 1-9.

The relationship between managerial overconfidence and technological innovation investment

Wang Shanhui, Wang Zongjun, Tian Yuan

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Abstract

Based on managerial overconfidence hypothesis from the theory of behavioral finance, the impact of managerial overconfidence on technology innovation investment is empirically studied by taking the data of Chinese non-financial listed companies from the year of 2002 to 2010 as samples, and whether or not the industry and ownership type is able to affect the relation is further examined. The empirical results show that managerial overconfidence has a significant positive effect on technology innovation investment; the effect only exists in the hi-tech and state controlled firms, but not in the non-hi-tech and non-state controlled firms.

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managerial overconfidence / technological innovation investment / ownership type / industry

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Wang Shanhui, Wang Zongjun, Tian Yuan. The relationship between managerial overconfidence and technological innovation investment[J]. Science Research Management. 2013, 34(5): 1-9

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