The Relationship between CEO Overconfidence and International Expansion: The Moderating Roles of State Ownership and Institutional Quality
GE Fei，TIAN Qitao，HE Xiaogang
1.Shanghai Normal University, Shanghai, China; 2. Henan University of Economics and Law, Zhengzhou, China; 3.Shanghai University of Finance and Economics, Shanghai, China
Abstract International decision-making is an important part of international business research, and overconfidence is an important psychological dimension that motivates managers to pursue valuable risk projects. This paper aims to analyze the impact of CEO overconfidence on international expansion, meanwhile examining the moderating effect of state ownership and institutional quality. Through the analysis of the data of China Shanghai and Shenzhen A shares of industrial companies from 2010 to 2018, this study shows that (1) The higher the degree of CEO overconfidence, the more inclined to international expansion; (2) The CEO overconfidence of private companies, compared with state-owned enterprises, has a negative effect on international expansion; (3) As the host country’s institutional quality improves, the CEO overconfidence of private companies, compared with state-owned enterprises, has a positive effect on international expansion.
GE Fei,TIAN Qitao,HE Xiaogang. The Relationship between CEO Overconfidence and International Expansion: The Moderating Roles of State Ownership and Institutional Quality[J]. Chinese Journal of Management, 2020, 17(7): 1007-.
