The Effect Of R&D Investment On State-owned Companies’ EVA Assessment

Companies’ R&D activities have a great role in enhancing its marketcompetitiveness. Companies can get more new products, new patents by R&Dactivities, and they can increase enterprise’ profitability, and thus enhance the value ofthe business.Using a sample of Chinese listed companies disclosed R&D investment over2007-2012, this paper proposed hypotheses, conducted sample selection, set thevariable to build the model on the basis of current research and theory. It uses standardanalysis and multiple linear regression analysis with the help of SPSS18.0to do theempirical analysis. Then it compared and investigated the effect and lagged effect ofR&D investment on state-owned companies’EVAassessment by industry.The results which is the same as state-owned listed companies show that to all listcompanies R&D investment has positive effect on EVA, and the effect on EVA laggedone year is greater than it on current EVA, but the effect on EVA lagged two year is notsignificant. In state-owned listed companies, the effect of R&D investment on EVA tostate-owned manufacturing listed companies is the same as the effect to state-ownedcompanies, but to state-owned non-manufacturing listed companies, the effect of R&Dinvestment on EVA is not significant. In state-owned manufacturing industry, R&Dinvestment has positive effect on current EVA in electronics industry, metal, nonmetalindustry and medicine, biological products industry; has positive effect on both currentEVA and EVA lagged one year in petroleum, chemical, plastic industry mechanical,equipment, instrumentation industry.