GEM High-tech Research And Development (R & D) Correlation Of Investment And Enterprise Value

Under the circumstances of economic globalization and the market economy hasbecome more sophisticated; R&D (research and development) is the source of high-techenterprises’ core competitiveness and sustainable development of power. Countries in theworld today are in different ways to increase the support of corporations’ R&D activities,such as increasing investment and providing tax incentives. The economic strength of acountry or an enterprise powerful is caused by the high R&D investment and high R&Dstorage. United States has the world’s largest R&D stocks, it can be said that a strong R&DStorage is the strong support of the U.S. economic growth. With the increased internationalcompetition of enterprises’ R&D products, R&D resources and R&D reserves, R&D fundsare gradually concentrated to the enterprise. Enterprises have become the mainconcentration of R&D activities. With the higher the market requirements of the corecompetitiveness of enterprises, R&D activities become the more and more important areaof investment in every country.This article selected25high-tech enterprises in the first batch of China’s GEM listedcompanies as samples, collected corporations’ R&D investment data and financialindicators data in the year of2009-2010. Use the classic corporate valuation model-theoretical model of Tobin’s Q and economic value added (EVA) theoretical model to dothe correlation test with the data of corporations’R&D investment. The results showed thatin process of the correlation test between Tobin’s Q and enterprises’R&D investment, bothin the year of corporation do the R&D investment and in the time after the companyinvested R&D expenses are displayed no significant relationship between the two elements.But if use the theoretical model of economic value added and corporations’R&D to do theinvestment correlation test, we will find that there are significant positive relationshipbetween the two elements. The results, on the one hand, proved that corporations’ R&Dinvestment can really increase the intrinsic value of the enterprise, on the other handproved Tobin’s Q to reflect the real value of the GEM listed companies is lower than theeconomic value added indicators. The reason for this result is various. We think that thebiggest factor may be due to the GEM capital market is not perfect, investors forinvestment in the Growth Enterprise Market (GEM) is caused by the lack of rational.The conclusions of this study, not only to provide an empirical basis for the GEMhigh-tech enterprises to promote the R&D investment, to establish a complete R&D system,and to improve the R&D investment level, but also provide a perspective of rational thinking to GEM investors, and then help to promote the overall development of the capitalmarket of China’s GEM.