Author(s)

Tongying Liang, Xiangtian Mo

School of Business Administration, South China University of Technology, Guangzhou, China.

Using the data of Chinese listed companies from 2012 to 2014, this paper empirically tests the relationship between managerial overconfidence and corporate R & D investment in the context of financing constraints by the method of multiple regression analysis, and further tests the impact of ownership type on the relationship. We find that: 1) Compared with the companies with weak financing constraints, the positive relationship between managerial overconfidence and corporate R & D investment in the companies with strong financing constraints is stronger; 2) In the context of strong financing constraints, compared with the state-owned companies, the positive relationship between managerial overconfidence and corporate R & D investment in the non-state-owned companies is stronger.

Financing Constraints, Managerial Overconfidence, Corporate R & D Investment, Ownership Type

Liang, T. and Mo, X. (2017) Research on the Relationship between Managerial Overconfidence and Corporate R & D Investment in the Context of Financing Constraints. Open Journal of Business and Management, 5, 22-33. doi: 10.4236/ojbm.2017.51003.