The Research On The Relationship Between Research And Development Investment And Profitability Of The Listed Companies On Small And Medium-sized Plate

It is the precondition of technology innovation for enterprises to carry out research anddevelopment activities, and is the key to form the core competitiveness of enterprises.Domestic and foreign enterprises listed the research and development as one of the importantdevelopment strategy, in order to win in the fierce competition in the market. The small andmedium-sized enterprises in the world economic and social development occupies a veryimportant position, which have made important contributions in invigorating the market,expanding employment, increasing income, stabilizing society, and adjusting the structure ofnational economy. In our country, the small and medium-sized enterprise is the backbone ofsocial development and economic progress, has now become the main force in theconstruction of our country’s market economy system. Converting the independent researchand development into the catalyst to enhance the competitive strength, enhance the level ofprofitability, is a magic weapon for small and medium-sized enterprises based on the market,grasp market opportunities. This paper is based on the small and medium-sized listingcorporation, attempting to start from the micro level and enterprise financial perspective,analysis of research and development investment effect, validity through increased investmentin research and development to enhance the profitability of enterprises, which has a certaintheoretical and practical significance.From the current situation of China’s investment in research and development, this paperreviews the literature on research and development investment and profitability, taking thetechnological innovation theory, input-output theory as the theoretical basis, defines theconcepts related to research and development investment and profitability, analyzes therelationship between the two, and on this basis selection of research and developmentinvestment strength and technical staff input intensity index to evaluate research anddevelopment investment, choosing the main business profit margin, return on total assets,earnings per share and operating profit cash ratio index to evaluate the profitability, and builda regression model. This paper selects before2009in China’s SME board listed companies asthe research object, using empirical data from2009-2011as empirical research sample. First,descriptive statistical analysis of the236small and medium-sized board listing Corporationwhole sample research and development investment and investment intensity of differentresearch and development profitability, and then using multiple linear regression method toverify the correlation between research and development investment intensity index andprofitability, and further studying on the basis of the existence of time lag and cumulative effect of research and development investment impact on profitability.The empirical results show that: the small and medium-sized listing corporation researchand development investment intensity and the main business profit margin, return on totalassets, earnings per share are significant positive correlation, and technical personnel inputintensity is significant positive correlation with the main business profit rate, and positivecorrelation with the rate of return on total assets and earnings per share, while both theresearch and development investment strength or technical personnel investment intensity anddescription of earnings quality and cash ratio is not significant correlation between operatingprofit. Whether research and development investment strength or technical staff inputintensity is not significant correlation with operating profit ratio of cash describing the qualityof earnings. Discovered by the lag of inspection, research and development strength on theprofitability of lag and cumulative effect, while technical staff input intensity does not lag onprofitability. According to the empirical results, this paper puts forward relevant policysuggestions from five aspects of the improvement the research and development informationdisclosure system, strengthening the protection of intellectual property rights, establishmentof internal research and development mechanism, strengthening the research and developmentintensity and persistence and the introduction of high-quality personnel has a positive effectfor our country small and medium-sized board listing Corporation to obtain long-termcompetitive advantage in the market.