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| Manager Overconfidence Heterogeneity and Corporate R&D Investment and Its Performance |
| LIU Bai，LU Jiarui，JU Tao |
| Jilin University, Changchun, China |
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Abstract Based on the typical types of overconfidence, such as control illusion and over-optimism, this study explores the differential impact of managers’overconfidence category heterogeneity and degree heterogeneity on corporate R&D investment. The results show that both control illusion and over-optimism types of overconfidence can improve corporate R&D investment, among which control illusion types of overconfidence has stronger positive effect. Judging from the heterogeneity of overconfidence, manager’ strong overconfidence promotes corporate R&D investment more significantly compared with weak overconfidence. In addition, compared with state-owned enterprises, the overconfidence degree heterogeneity in non-state-owned enterprises has a more markedly impact on the R&D investment. However, further works that among non-state-owned enterprises, the group with weak overconfidence makes better R&D investment for improving the future performance of the company, while the group with strong overconfidence is more likely to cause excessive investment in R&D decisions.
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Received: 23 January 2019
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