Significant increase or decrease in research and development (R&D) expenditure may have an immense impact on market value. Based on the punctuated equilibrium theory, this paper aims to empirically analyze the impact of R&D volatilities on market value and the moderating effect of executive overconfidence.,The study uses the panel data set that covers 902 Shanghai and Shenzhen A-share manufacturing listed firms and multiple regression method to test the theoretical hypotheses.,The results show that both positive and negative R&D volatilities have a robust and significant positive impact on the market value. Further analysis shows that the executive overconfidence positively moderates the relationship between R&D volatilities and market value.,In a rapidly changing and highly competitive environment, firms should recognize that the balance of innovation strategies will help to bring higher market value. Furthermore, firms could improve corporate governance to make the best of managerial characteristics, such as overconfidence, on the innovation decision-making process.,By pushing the static perspective to a dynamic perspective and empirically documenting the role of executive overconfidence, this study contributes to the literature on the relationship between R&D expenditure and market value, generating theoretical and practical insights for firms to improve innovation governance and innovation strategies to achieve better business performance.

中文翻译：

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研发波动与市场价值：高管过分自信的作用

研发（R＆D）支出的显着增加或减少可能对市场价值产生巨大影响。本文基于标点均衡理论，旨在对R＆D波动率对市场价值的影响以及高管人员过度自信的调节作用进行实证分析。本研究使用的面板数据集涵盖了902家上海和深圳A股制造业上市公司和多元回归方法检验了理论假设。结果表明，正负R＆D波动率对市场价值具有强大而显着的正影响。进一步的分析表明，高管人员的过度自信积极地缓解了研发波动与市场价值之间的关系。在瞬息万变的竞争激烈的环境中，企业应该认识到，创新战略的平衡将有助于带来更高的市场价值。此外，企业可以改善公司治理，以在创新决策过程中充分利用过度自信等管理特征。有关研发支出与市场价值之间关系的文献，为企业改进创新治理和创新策略以实现更好的业务绩效提供了理论和实践见解。