Innovation is one of the key points in the competitions between companies. When there are fewer and fewer differences between products from different companies, only innovation makes your products stand out from others. Innovations not only play an important role in national competitiveness, but also become one of the main driving forces to stimulate economic growth. Recently, overconfidence of related managers has already become one of factors that may influence the financial decision-making in behavioral finance field, which makes it become one of the main goals for researches. Therefore, in this study, whether R&D performance are influenced by overconfidence and whether there is positive correlation between R&D performance in parent company and the operation performances of the subsidiary in China are investigated in this study.
This study verified through empirical and experimental methods, and the results revealed that overconfidence of manager cannot fully explain the alterations of R&D performance in parent companies, which may indicate some special relationships between samples and chosen regions other than the influenced of foreign investments in parent company as described. Therefore, the variables in this study cannot completely explain its influence.
