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| Can CEO Overconfidence Account for Enterprise R&D Investment Distortion in the Case of Financing Constraint |
| Hao Panpan,Zhang Xindong |
| School of Economics and Management,Shanxi University,Taiyuan 030006,China） |
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Abstract From the perspective of financing constraint, as our sample that some listing firms of manufacturing and information technology industry in Shanghai and Shenzhen during 2003-2014, by panel regression on the model of R & D dynamic investment and investment distortion, we conclude that comparing with the fixed asset investment, the effect is more pronounced of CEO overconfidence on enterprise R & D financing constraint, which leads to the effect more obvious on the R & D investment distortion. Through the test of heterogeneous firms, we find that for those young and small firms which are subject to financing constraint, CEO overconfidence will cause underinvestment, and for those are not subject to financing constraint, CEO overconfidence cannot cause overinvestment. It shows that it will play a promotion role that CEO over confidence on enterprise innovation investment only in those firms which are not subject to financing constraint.
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Received: 21 June 2016
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Corresponding Authors:
Hao Panpan
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