Abstract
Innovation is an important source of power for enterprise development and an important weapon for enterprises to adapt to market competition. However, the investment in innovation decision-making of enterprises will be affected by many factors, and more and more scholars are beginning to pay attention to the element of overconfidence of enterprise managers. Managers' overconfidence is a common mental state. When managers are overconfident, they will make decisions more easily. So, does the manager's overconfidence affect the company's innovation investment? Existing research results show that overconfident managers can promote enterprise innovation investment, but overconfident managers are a double-edged sword. Scholars believe that on the one hand, overconfidence of managers will promote the innovation investment of enterprises; on the other hand, overconfident managers are often blindly arrogant, which may increase the business risk of the enterprise and even lead to bankruptcy. Therefore, it is necessary to look at the problem of managers' overconfidence dialectically. Through empirical analysis, this article will take the Shanghai and Shenzhen A-share manufacturing and information industry companies as specific research objects to explore the relationship between corporate managers’ overconfidence and corporate innovation investment. In this paper, by proposing a hypothesis-verifying hypothesis basic research method, it verifies the relationship between overconfidence in corporate innovation financing, innovation input, market response and corporate value. In order to enable overconfident managers to play their positive role in the process of enterprise innovation investment and prevent the risks caused by overconfidence, this article proposes relevant improvement suggestions from both positive and negative aspects.
Keywords: Overconfidence; Innovation Input; Corporate Value