Proceedings of the 2025 International Conference on Financial Innovation and Marketing Management (FIMM 2025)

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CEO Overconfidence as a Driver of R&D Intensity: Market Competition’s Catalytic Role in Chinese Listed Firms

Authors
Zhihan Cao1, *, Zexi Liao2
1Faculty of Business, City University of Macau, Macau, China
2School of Economics, Guangzhou College of Commerce, Guangzhou, Guangdong, China
*Corresponding author. Email: F22090107017@cityu.edu.mo
Corresponding Author
Zhihan Cao
Available Online 3 November 2025.
DOI
10.2991/978-94-6463-874-5_134How to use a DOI?
Keywords
CEO overconfidence; Corporate ideation investment; Industry competition
Abstract

In the context of national ideation-driven strategies, corporate R&D expenditure emerges as a pivotal driver for enhancing national competitiveness and sustainable corporate growth. However, prior studies predominantly adopt agency theory and executive characteristic lenses, lacking consensus on how irrational traits (e.g., overconfidence) shape innovative investment decisions. Consequently, this paper investigates the relationship between CEO overconfidence and corporate Ideation expenditure using data from China’s A-share listed companies. This paper selects data from A-share listed companies spanning 2014 to 2023 as the sample to verify the impact of CEO overconfidence on the intensity of corporate ideation investment. The findings reveal that CEOs, as the core decision-makers of corporate strategy, significantly Amplify corporate ideation investment through their overconfidence. Industry competition exacerbates the promoting impact of overconfident CEOs on R&D spending. This paper provides practical approaches for improving C-suite hiring and ideation-linked remuneration schemes in addition to enhancing the theoretical framework at the nexus of behavioral finance and ideation management.

Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2025 International Conference on Financial Innovation and Marketing Management (FIMM 2025)
Series
Advances in Economics, Business and Management Research
Publication Date
3 November 2025
ISBN
978-94-6463-874-5
ISSN
2352-5428
DOI
10.2991/978-94-6463-874-5_134How to use a DOI?
Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Zhihan Cao
AU  - Zexi Liao
PY  - 2025
DA  - 2025/11/03
TI  - CEO Overconfidence as a Driver of R&D Intensity: Market Competition’s Catalytic Role in Chinese Listed Firms
BT  - Proceedings of the 2025 International Conference on Financial Innovation and Marketing Management (FIMM 2025)
PB  - Atlantis Press
SP  - 1171
EP  - 1182
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-874-5_134
DO  - 10.2991/978-94-6463-874-5_134
ID  - Cao2025
ER  -