On The Performance Of R&D For The Chinese Listed Manufacturing Companies

Technology innovation is the behavior to make profit by commercializing technology progress or using technology progress in production to improve efficiency.Technology progress is the drive of technology innovation,but only when enterprises introduced technology progress in the business,can technology progress affect economic and society.Manufactures are not only the main implementers of technology innovation but also the engine of economic growth.The stock market is regarded as barometer of domestic economy.The listed companies in the stock market are the excellent ones in our country.This dissertation continues empirical economics tradition regarding technology innovation as R&D invest to study the R&D performance of listed companies and research the constraints of listed companies’R&D performance in view of industrial organization,evolutionary economics,behavioral finance and innovative geography.However,the essence of innovation behaviors,which are high risk,earnings interperiod,and highly information asymmetry,make it tricky for innovation economics to value the technology innovation performances in empirical research.This dissertation takes hedonic price function made by Griliches in 1981 to value enterprises’ R&D performances.As the view of author,there isn’t any such kind of research in China.In the hedonic price function,the value of the enterprise is determined by the transaction of the enterprises’ shares in the stock market.On the other side,enterprises are the combination of a set of tangible and intangible assets,including the intangible assets generated by R&D input.The shadow price of knowledge asset to tangible assets could be estimated according to hedonic price function,which is technology innovation performance in this dissertation,which also reflects the evaluation(after discounted)by investors on profit brought by knowledge assets.The author also introduced half-year momentum indicator to control the effect of investors’ emotion on enterprises’ value and try to improve Grilichies’s hedonic price function by calculating enterprises’ value before and after the reforms of split share structure.Then this dissertation studies China listed manufacturing companies’ innovation behaviors and performance from the view of firm size,market structure,industry lifecycle and geographic cluster.The main conclusions are as follows:(1)R&D investment will increase company’s market value.After controlling the investor sentiment,R&D capablity,the company’s debt risk,the market probably high valuation for successful company and any longrun profitability of the firms which is not specifically related to R&D inputs,R&D performance is positive and significant.That is,the capital market believes R&D investment will increase their stock of knowledge to enhance their competitive advantage,help enterprises win the intense competition,earn excess profit,then promote enterprise value.Although China listed manufacturing companies’ R&D performance is higher than tangible capital,but at a lower level compared with the developed coutries.(2)Resulting from the testification of the classic Schumpeter hypotheses,the dissertation takes firm size and market structure in account and finds that R&D performance is significantly correlated with the firm size during period 2003～2011 that the sample covered,but not so simple as linear but shows a inverted "U" curve along with the vibration of the firm size.This finding embodies the combination of Schumpeter’s theory "The larger the firm size the better to conduct innovation" and the opponents’ theory "Small enterprises are better to conduct innovation".However,there doesn’t exist any kind of consistent and stable relationship between R&D performance and market structure.(3)Introducing lifecycle of industry is to treat innovation from the view of industry evolution.The dissertation roughly splits the industries that the sample covered into three types by growth rate and relationship between industries and technologies revolutions,which are growing,mature and declining.The R&D intensity of these three types industries goes down in turn,growing industries’ is the highest,mature industries’ is the middle and the declining industries’ is the lowest,so does the R&D performance,which indicates that this kind of classification does reflect the differences of technological progress potential and current technology level in different industries.(4)By calculating the geographic distribution of listed companies’ economic and innovation activities,this dissertation displays the geographic distribution of listed companies’ industries and innovation behaviors.The result shows that the geographic distribution of China manufacturing listed companies is quite asymmetric,most of which locate in the East coastal provinces;innovative activities have the similar distribution,even more concentrated.Then we estimate the listed companies’knowledge spillover and analyze the effect of knowledge spillover,which declines along with the geographic distance,on the companies’ market value and R&D performance.Then we find that the knowledge spillover of other listed companies in the same industry of the same region will raise the listed companies’ market value.The R&D performance of geographical contiguous listed companies in the same industry is higher,which dependent on the knowledge spillover of other listed companies in the same industry of the same region.But the difference is not so obvious between the models of declining with distance and non-declining with distance.The consequence of findings has widened the knowledge of companies’geographic distribution from view of knowledge spillover.