Study On The Relationship Between R&D Investment Intensity And Performance Of The Listed Companies On SME Board

R & D investment plays a very important role for the development of enterprises, so the influencing factors of the R&D investment in listed companies and how their R & D investment promote their performance have always been the international frontier areas of concern. Because of the earlier non-mandatory disclosure to R & D investment of listed companies and capital market imperfections in our country, there were few research on this subject, and relevant research mainly demonstrate from a theoretical point of view, or are concentrated in the field of macro or medium. As to the enterprise of the micro-area, whether R&D plays a positive part in promoting firm performance still lack consistent empirical results support. With the introduction of new accounting standards and the continuous advancement of multi-level capital market, more and more listed companies to disclose its R & D investment data in annual report, which also provides the basis and conditions for related research.This paper introduces the relevant study home and abroad on the relationship between the R & D investment and the firm performance at first, and then defines relevant concepts of R&D investment, make a brief introduction to technological innovation and economic growth theory and human capital theory. Based on these theories, the paper begins empirical study.The author select the R & D funding intensity and R & D personnel intensity as the explanatory variables, firm size, financial leverage and listing number of years as control variables, earnings per share and net cash flow from operating activities per share as two explanatory variables of firm performance to construct a multivariate regression model R & D. The model studies the correlation between the R&D investment and the firm performance from the ability to get cash flow and profitability respectively. The paper select 148 listed companies on SME board which disclose the information about R&D investment as samples, and make use of the R & D investment data published in the annual report.The paper firstly describes the R&D investment intensity condition of the full sample of 148 listed companies and the two sub-sample including tech companies and non-tech companies. Then verify the correlation between R&D investment intensity and firm performance using multiple linear regression method. On the basis of this, the paper studies whether there exists lagging nature when the R & D investment intensity influences the firm performance. Finally the paper analyze whether the correlation between R & D investment intensity and firm performance is different in the two sub-samples.The empirical results show that, both the R & D funding intensity indicator and R & D personnel intensity indicator have significant positive correlation with and Earnings Per Share, indicating that corporate R & D investment intensity is significantly positive related with profitability. As for the capacity acquiring the cash flow, the R & D funding intensity is negatively correlated with the Net Cash Flow from Operating Activities Per Share, while R & D personnel intensity is positive correlated with the net cash flow from operating activities per share. Through the lagging test from 2007 to 2009, the result shows that neither the R & D funding intensity nor R&D personnel intensity has a lagging impact on corporate performance. The paper also finds that between the two sub-samples of the tech-enterprises and non-technology enterprises in the relation between R & D investment intensity and firm performance have certain difference.Finally, according to the empirical results, the author make some relevant suggestions respectively from the point of the R & D investment information disclosure system, internal R & D mechanism of the enterprise and improvement the external policy environments.