An Empirical Study On R&D Investment And Performance Of Listed Corporations

R&D activity is the main origin of innovation, and innovation is just the basic and the key to form and advance the enterprises core competition ability. In the furious market competition, the overseas enterprises have already gained the lead of the domestic enterprises. R&D activity has been an important content of the enterprises developmental strategy in the overseas enterprises, and the enterprises invested the huge manpower, the physical resource and the financial resource in R&D activity. Our country businesses enterprises, however, have a low investment level in R&D activity. And the level has already seriously affected the competition ability of our enterprises in international market.The paper, using observations of our listed manufacturing industry and information technique industry between the years 2003-2005 in stock market of Shanghai and Shenzhen, adopting the method of empirical study, utilizing the multi-dimensional linear regression model and the amendatory Cobb-Douglas production function and selecting two sets of datum, analyzes the relationship between R&D investment and performance of listed companies. The results illustrate that R&D investment generally has an obvious positive correlation with performance of listed companies, and the increment of the R&D expenditure investment strengthens gain ability and development ability of the enterprises, and R&D investment has lag result and accumulation result.In view of the paper findings, not only for our listed companies, but also for our non-listed companies, it is profitable for promoting the companies to attach importance to R&D activity, to increase R&D investment and strengthen our enterprise's competition.