Empirical Studies On Listed Companies' Performance Of R&D Investment In China

Entering 21st century, the global economy grows rapidly and market competition intensifies. In order to survive and develop in the competitive market, companies must take all kinds of measures to arm themselves and form the core competitiveness. R&D activities, knowledge and technology innovation can enhance companies'advantages fundamentally. So R&D plays a important role in the companies'development. In recent years, the ratio of R&D and GDP in China is still very low, and most of the companies don't have a sound R&D institution. This reflects that R&D activities in China is lack of attention and systematic organization and management. The weakness of the companies'competitiveness and insuffice of innovation have much to do with the lack of R&D in our country. Given the reasons above, it is necessary to analyze the relationship between R&D and companies' performance, and this can provide theoretical and empirical basis for companies' R&D decisions.Based on the precedent researches, this paper adopts a combined theoretical and empirical approach to analyze and test the relationship between R&D and performance, including the whole sample, high-tech enterprises and non-high-tech enterprises. The main conclusions of this paper are as follows:(1) In the whole sample, there is a prominent and positive relationship between R&D and performance and there is lag-effect. At the same time, there is a prominent inverse-U shape relationship between R&D and performance. And the lag-effect also exists.(2) In the sample of high-tech enterprises, there is a prominent and positive relationship between R&D and performance and there is lag-effect. At the same time, there is a prominent inverse-U shape relationship between R&D and performance. And the lag-effect also exists.(3) In the sample of non-high-tech enterprises, the relationship is not prominent.(4) In the sample of manufacturing enterprises, there is a prominent and positive relationship between R&D and performance and there is lag-effect.(5) In the sample of information technology enterprises, there is a prominent and positive relationship between R&D and performance and there is not lag-effect. At the same time, there is a prominent inverse-U shape relationship between R&D and performance. And the lag-effect doesn't exist.(6) In the sample of construction enterprises, there is a prominent and positive relationship between R&D and performance and there is not lag-effect. At the same time, there is a prominent inverse-U shape relationship between R&D and performance. And the lag-effect doesn't exist.(7) In the sample of mining and wholesale and retail trade enterprises, the relationship is not prominent.The basic framework of this paper is as follows:Chapter one is the introduction. It states the background and the research meaning, introduces the structure, research ideas and methods of this paper. At last, the introduction outlines the main conclusions, innovations and limitations of this paper.Chapter two is about the summary of literatures. This chapter simply reviews the results of the effect of R&D on companies'production efficiency, accounting performance and market performance. Based on the above, it points out the research area of this paper.Chapter three is concerned about the theoretical analysis and research design. Firstly, this chapter states the theories about technological innovation can push the development of economy and industries, including input-output theory, economic growth theory, and product life cycle theory. Secondly, it points out the lag-effect and inverse U shape of R&D. Based on the theories above, this paper put forward three research hypotheses. Finally, this paper constructs the model and designs the dependent variables, independent variables and control variables.Chapter four is the empirical research. It is the core of this paper. First, it explains the sample selection. Then this chapter conducts of the descriptive statistics and correlation analysis of the whole sample, the high-tech companies and non-high-tech companies separately. At last, it conducts the empirical research to test whether the hypotheses put forward is right or not.Chapter five is the conclusions and suggestions. According to the empirical results, this chapter put forward some countermeasures and suggestions.The innovations of this paper are as follows:this paper chooses 608 companies in the main board market from 2006 to 2010, and analyzes the impact of R&D on the performance with the balanced panel data model, including the whole sample, the high-tech companies and non-high-tech companies. There are also some limitations in the paper. On one hand, because of the restriction of the data acquisition, we can choose only five years data. On the other hand, we can also use the amount of research workers, intangible assets such as the brand to measure the R&D index. Due to the data acquisition and multicollinearity, we only choose a single index to measure the R&D activities of listed companies.