| Throughout the history of domestic and international economic development, manufacturing-led industrialization has become an important force to change the face of society in a country’s economy. In the past 30 years of Chinese economic reform, China’s manufacturing industry has been developed rapidly by using cheap factors of production and the broad market resources which attracts a large number of global funds. But with the weakening of welfare produced form population and the exchange rate advantage, China’s manufacturing industry develop in a difficult environment. Look back over, the main reason of this situation are the extensive mode of manufacturing industry,the lack of technical content, low value-added products. Thus promotion of technical innovation is of great necessity and importance. By the meaning time, technological innovation and R&D investment is the source and motive force.R&D activity is the soul of manufacturing industry, and it is an inexhaustible power to keep sustainable development and evergreen of enterprises. Since entering the 21st century, China focus on training innovation capability more and more, enhance national competitiveness. In 2006, China promoted that "Long-term Scientific and Technological Development Plan (2006-2020)", which used to increase investment in R&D activities, enhance scientific and technological progress contribution rate of China’s manufacturing industry, change the current extensive growth model towards a better and faster development.However, the R&D activity itself has many features, such as highly risk, highly persistent uncertainty and continuous need of resources. Enterprises in the R&D activities have to estimated its future economic benefits previously that intend to flow into the corporate and the impact of aging. Along with the existence of character in modern enterprise and short-term perspective of management, managers tend to hold conservative attitude towards R&D activity. Thus, researching correlation between investment in research and development of China Listed Companies (referred to R&D investment) with business performance of the development has a crucial theoretical and practical significance in China’s manufacturing industry transformation.By combing and analysis of domestic and international relevant literature and using the theory of knowledge and technology innovation theory, principal-agent theory and nature of property rights theory, this paper selects data of 2012-2014 China Listed Companies as an object of study. In order to research the relationship between R&D investment and business performance and other factors affecting, this paper proposes three hypotheses and establish an empirical model to test these hypotheses, then we use descriptive statistics and regression analysis of empirical test our hypotheses. Eventually, we get the following conclusions:First, there is a great significant positive correlation between manufacturing firms R&D investment and firm performance. And there is a two-year long effects between listed manufacturing company R&D funding with business performance. Second, the nature of the company may regulate the correlation between R&D investment of manufacturing listed companies and firm performance. The non-state-owned enterprises plays a positive role in R&D investment with firm performance. Third, the Characteristics of Directorate which manager and owner is the same person has a positive regulatory role in R&D investment and firm performance. Finally, this paper summarizes the conclusions of empirical study and put forward policy recommendations based on the conclusions, describes the deficiencies and limitations of this study exists for further research to provide future research directions. |
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