| Science and technology are primary productive forces. Effected by the plannedeconomic system for a long time, the development of the economy in China mainlyrely on the cheap labor and financial capital investment, which results in the lack oftechnological innovation ability and the low levels of capital allocation. While theimportance of emerging production factors, especially technical factor, is rapidlyimproving in the fierce competition, national and corporate status began to strengtheninvestment in technology and innovation, leading to the internal changes in the levelof asset allocation, which might do profound impacts on the ROE of enterprises.Ever since2006, the discussion about the ROE of Chinese companies hasbecome the focus which decides whether the growth of Chinese economy isoverheating and sustainable. This paper make ROE as the starting point to study theimpact of technical capital configure to the ROE of enterprises. We adopt the methodsof empirical research and select2007-2011listed A-share companies in China whichare related to the strategic emerging industries as the object of our study. This isbecause the strategic emerging industries, which has become an important part ofChina’s "12th Five-Year Plan", are not only representative of the important areas ofscience and the cutting edge of technology, but also the core to cultivate the ownproperty and critical core technology for companies. In addition, we will also studythe level of technical capital allocation, operating performance and the efficiency ofcapital allocation for Chinese companies through the strategic emerging industries.In order to study the relationship between technology capital allocation and ROEof Chinese strategic emerging industries, we design the intensity of R&D expenses,R&D personnel strength, patented technology per capita capital and technologycapital ratio as four proxy indicators to reflect the allocation level of technologycapital, build models and do the empirical analysis using multiple linear regressionmethod of sub-industries, and also make a further inspection of the lagged effects ofthe technology capital allocation. Then we make the regression analysis through themultivariate linear model and learned the further lagged effects of technology capitalallocation to ROE.The results of the regression appear that the technical capital in Chinesecompanies is low and the level of its allocation is not high either; the configurationindexes of technology capital for Chinese strategic emerging industries show apositive effect on ROE, except the technology capital ratio; the inputs of investmentin R&D and other production factors are likely to result in a significant economicbenefits outflow of the current enterprise, which will increase the burden onenterprises, resulting in the increase in corporate expenses and the decline of ROE; In addition, the lag effects of technology capital allocation do exist in the strategicemerging industries of China, and the effects of the lag are significant in one to threeterms, but when the lag effects of technology capital for four terms are tested, theresults are not significant. It is visible that the contribution to the yield of technologycapital accumulation to strategic emerging industries is not as much as the initialdegree after a few years, since the technical upgrading and technological capitalamortization make the pre-technology capital contribution to the business benefitremote. Through the regression results, we also found that the contribution of someindicators of technical capital allocation show a certain instability to ROE, which islikely associated with the existing model of economic growth in China.The paper finds that the extensive economic growth mode has negative impacton technical R&D and innovation, resulting in the low contribution of technology toROE. The efficiency losses of technical innovation and capital allocation have largelyaffected the contribution which technology capital should made to corporateprofitability. |
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