Do CEO overconfidence and demographic characteristics moderate the effect of R&D investment on firm performance?

IF 3.6 3区管理学 Q2 BUSINESS

Marketing Intelligence & Planning Pub Date : 2024-08-06 DOI:10.1108/mip-05-2023-0242

Feiyang Guan, Tienan Wang

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引用次数: 0

Abstract

Purpose

This paper aims to examine the influence of overconfident or conservative CEOs on the performance feedback of R&D investment, as well as the combined impact of CEO overconfidence and demographic characteristics on the relationship between performance feedback of R&D investments.

Design/methodology/approach

Grounded in the upper echelon theory, listed companies in China are selected as samples, and the Heckman two-stage model is used to examine all the models.

Findings

This paper reveals that overconfident CEOs tend to make suboptimal investment decisions. These decisions are influenced by cognitive biases that have a negative impact on the performance of R&D investments. However, the negatively moderating effects of CEO overconfidence can be mitigated if they have overseas experience or academic background, or they are younger.

Originality/value

These mechanisms highlight the various ways in which CEO psychological factors and demographic characteristics can complement each other.

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首席执行官的过度自信和人口特征是否会缓和研发投资对公司业绩的影响？

本文旨在研究CEO过度自信或保守对研发投资绩效反馈的影响，以及CEO过度自信和人口特征对研发投资绩效反馈关系的综合影响。本文以上层理论为基础，选取中国上市公司为样本，采用Heckman两阶段模型对所有模型进行检验。这些决策受到认知偏差的影响，而认知偏差会对研发投资的绩效产生负面影响。但是，如果首席执行官具有海外经验或学术背景，或者他们比较年轻，则可以减轻首席执行官过度自信的负面调节作用。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Marketing Intelligence & Planning BUSINESS-

CiteScore

8.00

自引率

9.10%

发文量

期刊介绍： Marketing Intelligence & Planning (MIP) facilitates communication between researchers and practitioners, providing the users of research with a wealth of robust and relevant information. At a time when some journals are losing their relevance to industry and practical requirements, MIP successfully offers a bridge between academic and practitioner thinking, while retaining a high level of scientific rigour.

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