Empirical Study On How Technical Capital Affects The Profitability Of Enterprise

With the competition among enterprises becoming increasingly fierce, more andmore enterprises begin to attach importance to enterprise’s R&D, R&D spending canhelp to form the enterprise’s technology capital, promoting enterprise performance.Many scholars of our country have studied this issue, but there has not been aconsistent conclusion. And with the new accounting standards and related policy havebeen carried out, many listed companies have a disclosure of its own R&D spendingin the annual report, which provides the basis to the research in this paper. Because ofthe agency costs between the enterprise managers and shareholders, EVA, which hasdeducted the cost enterprise shareholder interests, can reflect the true managementcondition of the enterprise. Therefore, this paper also selects EVA as an indicator tomeasure the enterprise performance.The core of this paper is to study the technology capital’s impact on profitability,which is based on previous studies and uses the empirical research method. By certainselection criteria,92A-share listed companies are selected as research samples, usingthe data from2009-2011to study this matter. The empirical results show that theenterprise R&D plays a role of the increasing the current and lag period of businessperformance, and also brings additional revenue for the shareholders. While R&Dpersonnel investment is not relevance to the current profits, but for the profits lagged ayear and lagged two years, R&D personnel investment plays an role in promoting thebusiness performance.This article is divided into five parts, the first chapter is to introduce thebackground, the research content and the research significance of this article. Thesecond chapter is literature review, which is the summary and comments of previousstudies, and have an expatiate of the theory involved in the article, including the studyof the theory of the technology capital, EVA indicators. And then there are the reviewand summarize of the corporate capital investment performance, and an explainingbased on some financial theory. The third chapter is about the research methodologyand sample design part, which explains the hypotheses of this article, and theappropriate variable and regression equation are established, thus have a variableregression analysis. The fourth chapter is empirical process, a significant step of thetest and the corresponding variable adjustment by regression analysis and statisticaldescription, based on the statistical results, validate assumptions before. The fifthchapter is the conclusions and recommendations section of this article, the empiricalresults were analyzed and the conclusions of this study. Followed by a review of thelimitations of the study, from the enterprise reform, and state support for the performance evaluation of the securities market standardized management andenterprise to make relevant recommendations.Compared to previous studies, this article is more prominent innovations selectedindicators of economic value added as an important indicator of enterpriseperformance evaluation through the analysis of the applicability of the economicvalue added advantages reflect the choice of this indicator. In addition, this paper alsouses years of panel data regression more rigorous research results, research resultsmore in line with the real situation.