The role of managers' psychological characteristics on the relationship between family corporate ownership and R&D investment

Excessive trust as a psychological phenomenon forces CEOs to make extraordinary strategic decisions that ultimately affect organizational outcomes. The purpose of this study is to investigate the role of psychological characteristics of managers on the relationship between family corporate ownership and R&D investment. This research is applied in terms of purpose and correlation methodology. The statistical population of the study is all companies listed on the Tehran Stock Exchange and using the systematic elimination sampling method, 146 companies were selected as the sample of the research in an 8-year period between 1392 to 1399. The method used to collect information is a library and the relevant data for measuring variables were collected from the Cadal site and the companies' financial statements and then Ivyus software was used to test the research hypotheses. The results of testing the research hypotheses showed that there is a positive and significant relationship between the ownership of family companies and investment in research and development. Also, the psychological characteristics of managers (management overconfidence) have a positive and significant effect on the relationship between ownership of family companies and R&D investment.