Value Relevance Research Of R&D Investment In Pharmaceutical,Biological Products Industry

In recent years, with the intensification of economic globalization and market competition, R&D activities have become a lifeline for the survival and development of enterprises, corporate profit growth and enhance competitiveness plays a more and more important role. Therefore, in a sense, today’s enterprises in the process of development for the research and development of capital investment proportion is also growing, especially for the biological medicine industry. These industry involves a lot of advanced science and technology in the process of production, is a highly integration of high-tech industry, the development of innovative capacity is higher requirements.Of course, from the present situation of biological medicine industry of our country expenditure for research funding has shown a steady growth trend, but compared with some developed countries, other, still exist some problems, such as is lacking in R&D expenses support, in treatment of R&D investment still exist some problems, which to some extent limited the development of biological medicine industry in our country, also let in a disadvantageous position in the international market competition. Therefore, in medicine, biological products industry, the value relevance of R&D investment, enterprise development is to enhance the core competitiveness of the enterprises, but also an important way to achieve sustainable development in the knowledge economy.Based on this, read and study the related literature at home and abroad, found that although the enterprise for the value relevance of many, but more research is generalization, just talking about there is no general correlation, on the value relevance of the study, in medicine, biological products industry value relevance or less. And for not much research and development expenditure disclosure to enterprise value influence, refinement is not spending on research and development, research is not enough fine. So this paper selects medicine, biological industry listing Corporation as the research object, research step by step research expenditure, development expenditure and final confirmation of intangible assets of the three parts of medicine, biological products industry value relevance.This dissertation uses92biological medicine industry samples which is from A shares companies, based on the equity value and business performance perspective, under the control of total assets, net assets, using the method of multiple linear regression, to study the connection between R&D investment and enterprises.The results show that for the enterprises of biological medicine industry, the impact on the business performance of R&D investment spending is not significant in the short term, but as time goes on gradually, the company’s operational and management performance are positive relative; R&D spending has a positive correlation with the stock price, but it is not significantly. As a result, the article suggests that:Firstly, biological medicine industry companies should enhance the awareness of independent research and development continue to increase R&D investment in the market competition; secondly, biological medicine industry companie should regulate the disclosure of R&D investment, in order to increase the usefulness for the decision-making.The innovations of this paper lies in the (1) from the perspective of innovation. At present, the value relevance of the pharmaceutical, biological products industry research is not many, but this article selects medicine, biological products listing Corporation as the object of study, research on the value relevance.(2) the research content innovation. In the current domestic discussion about value relevance are more concentrated in have no correlation, but the research in this paper is the three part of the distribution of expenditures on research, development expenditure and final confirmation of intangible assets, makes the research contents to innovation.