An Empirical Study Of R&D Investment And Financial Performance

The importance of technology and the capability of independent innovation has gainedtechnical mastery and innovation must rely on investment in research and development. R&D investment is a means of national and enterprise core technology, but R&D risk, thegreater the difficulty the more high-tech development, the higher the degree of risk, high riskcan often bring high returns. Although R&D investment are likely to fail, but the enterprisesto be able to master the sophisticated technology, continue to increase investment.Domestic and foreign researchers on the R&D investment and firm performance "a lotof research, research methods and different objects, the final results of research results is alsodifferent, mainly irrelevant, the correlation is not strong, negative related positively correlatedrelationship. In the revelation of the results of previous studies, hoping to study therelationship of the R&D investment and financial performance of the listed companies of theautomotive industry, little reference available for the automotive industry in R&Dinvestment decisions.Research methods, using a combination of empirical research and normative research,empirical research. Research steps: First, select R&D investment targets and financialperformance indicators, made after the lag assumptions, model building, and then substitutedinto the observational data Pearson correlation test and regression analysis, and thecumulative effect of test.After descriptive analysis and regression analysis of the data on R&D in the automotiveindustry, concluded that: compared to the international industry, investment in research anddevelopment of low intensity; the same time, the research and development of successfulsmall proportion of enterprises; investment in research and development strength and returnon assets was a positive correlation relationship, that R&D investment has a positive effecton the profitability of the lag period of one year; R&D investment intensity with the mainbusiness growth rate is positively correlated significantly impact R&D investment intensitychanges by one percentage point, the growth rate of main business will change by5.3percentage points, the lag period of two years, and R&D investment intensity on the growthrate of main business has a cumulative effect, indicating a certain role in promoting R&Dinvestment growth capacity; R&D intensity was no significant correlation between the ratioof operating cash flows, R&D investment and solvency relationship is not clear.According to the automotive industry R&D intensity is significantly less, should raisethe awareness of innovation, increase investment in research intensity, enhance corecompetitiveness; low success rate of R&D, R&D risk, the automotive industry shouldstrengthen the R&D project selection management and take the the powerful United Way;government should increase policy support of the automotive industry, to encourage R&Dinvestment, reduce development costs; industry associations should also strengthen the guidance and leading role in research and development; disclosure of non-standard problemsfor R&D funding, should regulate their disclosures accurately reflect the R&D funding data.Research and innovation are two points:(1) for the first time the relationship between the R&D investment and financialperformance of listed companies in the automotive industry for the study.(2) more scientifically determine the cost of R&D investment. Under currentaccounting standards, R&D expenses of basic research, applied research, R&D spendingconditions capitalized, so a company’s total R&D investment should be the sum of thecapital and expense. R&D investment, each year the actual costs incurred, subject to theretirement of the amount spent in the current period or current book balance to avoid less ordouble counting of R&D investment costs.The research shortcomings: First, the relatively small sample size; various enterprisesindividual differences, and the stage of the difference is not considered.