Research On R&D Expenditures And Corporate Performance

Since the late1980s, with the rapid development of the world, innovation activities have become more and more necessary for the enterprises. Thus, the R&D’investment in innovation investment gradually attracted the attention of the enterprises. R&D activities throughout the various stages of the different types of innovation activities, it is also an important driving force for the development of enterprises.Listed companies on the ChiNext2lack emphasis on the R&D investment, but the healthy growth of listed companies on the ChiNext not only make sense to the business managers, investors, government departments and other stakeholders, but it also promote technological progress of the country. Based on the above reasons, this paper selected listed companies on the ChiNext as the research target.There are six chapters of this paper, which makes research on the relationship between R&D investment and ChiNext listed companies. The first chapter elaborates the background and significance of this research; the second chapter expounds the literature review on both macro and micro aspects; the third chapter analyzes the theory of technological innovation, human capital theory, core competence theory and signaling theory; the fourth chapter explain the R&D background and the current situation of the R&D investment, the fifth chapter contain the research design, based on a3-year (from2009to2011) panel data of listed companies on the ChiNext, the study focus on the relationship between the R&D investment indicators and performance indicators, so as to the profitability indicators, development indicators and innovation indicators; Chapter six put forward the relevant recommendations and opinions for the companies, the investors and the government based on the empirical results; at last the study pointed out the limitations and future research outlook. The empirical part of the study show that:①Expenses indicator of the R&D do not have a positive influence on the current performance indicators of a firm, the expenses indicator of the R&D is negatively correlated with profitability indicators, and it is not related with the development indicators, innovation indicators and Market Indicators.②The influence of expenses indicator of R&D on corporate performance is a gradual process, the effete to the third year is more obvious than the second year. Through continued expenses for the R&D, a positive effect on firm performance is also increasingly obvious:accumulated expenses indicator of the R&D in2009is positive correlated with one year after indicator of the operating margin, return on total assets and the capital accumulation rate. There accumulated expenses indicator of the R&D in2010is has impact on return on total assets indicators and Increase rate of main business revenue has been last the operating margin and return on total assets for one years besides. The accumulated expenses indicator of the R&D in2009is related with Increase rate of main business revenue of two year after.③There is no consistent lag period between the expenses indicator of in R&D and performance indicators. Personnel indicator of the R&D of ChiNext corporate is negatively correlated with innovation indicators for two consecutive years, and it still remains negative impact. Expenses indicator of the R&D only affects development market indicators after one year, but it affects profitability indicators and innovation indicators after two years later.④Personnel indicator of the R&D is not associated with the current profitability indicators,development indicators and Market Indicators, it is negatively correlated with innovation indicators for three consecutive years. Investment in R&D personnel failed to play a role in promoting performance of listed companies on the ChiNext.The innovation of this article lies in less literature concerned about ChiNext, especially ChiNext panel data. Expenses indicator data and Personnel indicator data of the R&D in this article are all collected by hand, they have strong credibility, and this article is more comprehensive in indicator selection. However, this article have some inadequacies, including the number of sample is relatively low, the time span is very short, the disclosure of the number of corporate R&D personnel data is not standardized, and this article lack research on its direct output---patent, and it also does not consider the internal governance structure, nature of equity and other influencing factors.Finally, according to the conclusions, this study make suggestions to the ChiNext enterprises in China about strengthening the capability of independent innovation, there is a necessary to increase expenses investment in R&D activities, and optimize the structure of scientific and technological personnel. We also make recommendations to the companies, the investors and the government with theoretical support.