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Review of Research on the Negative Innovation Performance Feedback and Corporate Overinvestment

Year: 2025

Type: article

Abstract: Insufficient innovation momentum and imbalanced investment efficiency both constrain socio-economic development. The key to addressing these two issues lies in activating the innovation potential of micro-enterprises and preventing irrational investment. While extensive research exists on performance feedback related to economic indicators, studies on those associated with other objectives remain scarce. Meanwhile, a research gap persists concerning the impact on corporate investment efficiency from the corporate behavior perspective. Against this backdrop, this paper analyzes the research contexts of innovation dilemmas and overinvestment, highlighting the necessity of studying their interrelationship. Additionally, following a brief review of the behavioral theory of the firm, threat-rigidity theory, and prospect theory, this paper synthesizes relevant literature on innovation performance feedback and overinvestment, and offers prospects for future research.

Source: Scientific Journal Of Humanities and Social Sciences

DOI: 10.54691/17xxka36

Author: Qiaoyue Liu

Institution: Soochow University

Language: English

Topic: Corporate Finance and Governance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Industry, innovation and infrastructure

Open Access status: hybrid

OpenAlex ID: W4415015227

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