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R&D investment and future firm performance: The role of managerial overconfidence and government ownership

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  • Imen Tebourbi
  • Irene Wei Kiong Ting
  • Hanh Thi My Le
  • Qian Long Kweh

Abstract

We investigate the relationship among managerial overconfidence (MO), government ownership, and research and development (R&D) investment using data from Vietnamese public companies for the period 2007–2016. We also investigate how R&D investment, given MO and government ownership, affect future firm performance. Our results indicate that MO and government ownership are positively related to R&D investment. Conceptually, this study investigates novel factors affecting of R&D investment and their role in improving firm performance. Overall, this study emphasizes the importance of R&D investment in the corporate world, improving firm performance and, ultimately, economic prosperity.

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  • Imen Tebourbi & Irene Wei Kiong Ting & Hanh Thi My Le & Qian Long Kweh, 2020. "R&D investment and future firm performance: The role of managerial overconfidence and government ownership," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 41(7), pages 1269-1281, October.
    • Handle: RePEc:wly:mgtdec:v:41:y:2020:i:7:p:1269-1281
    DOI: 10.1002/mde.3173
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