Research On R&D Behavior And Cross Period Effect On The Enterprise Value Assessment

With the intensification of the process of industrial restructuring, the value of research on the R&D investment of listed company increasingly shows its importance. The existing literature suggests that during a observation period of time, by increasing R&D investment, the company increases earnings in the future. This article takes GEM biopharmaceutical industry for example, using a value assessment based on EVA model, at the same time, this article also gives a brief analysis of the gap between the share price and EVA value, this may be related to China’s capital market stage of development as well as the imperfections of the EVA valuation model theory.To research the R&D behavior of biological industry, this paper use the three-factor model to analyze the relationship between R&D intensity and the current enterprise value, find that there does not appear significant positive correlation relationship, subsequently, this article analyzes the R&D intensity and future enterprise value, find there is also no obvious positive correlation, which is opposite to the previous judgment, we believe that this may be the particularity of biopharmaceutical industry background, we believe that may be R&D stock index has more explanatory power than the R&D flow index, Finally, this paper analyzes the cumulative CRD(Cumulative Research and Development). The result show that, there is significant positive correlation relationship between the cumulative CRD and the enterprise value, which is consistent with our prediction results, Taking into account some factors will affect the relationship between the R&D investment and the enterprise value, leading the problem of the correlation between regression residuals and R&D investment, so this article uses of instrumental variables approach analysis to eliminate endogenous interference. The interpretation of the cumulative effect has the following two aspects:on the one hand, the expensive R&D costs of biopharmaceutical industry and take long development time to conduct the R&D activity; the other hand, multinational cooperation in R&D background also makes the R&D value show a cross-term. Finally in accordance with the relevant conclusions,,the text gives some related policy proposals, to make the biopharmaceutical enterprises better adapt to the objective requirements of economic development in the new situation.