Study On The Relaionships Between Continuous R&D And Enterprise Value Based On Empirical Analysis Of Venture Enterprises

In order to make the technology innovation drive economic and social development, and to establish a innovative country, the state has increased R&D investment. Enterprises, as the main national technology innovation activities, can get more R&D subsidies because of government’s care. In addition, with the rapid development of science and technology, the emergence of economic globalization and the increasingly fierce international competition, enterprise has realized that technology innovation is playing a very important role in forming core competitiveness. In order to improve the technical innovation ability, enterprises pay more attention to the internal R&D activities, and they also have invested more and more human resource, funds, materials and other resources in R&D activities. Therefore, the ratio of R&D expenditure in business activities are larger than before. Especially for the start-ups, innovation is an important factor to maintain its leading position in the fierce competition. Venture enterprises, which are generally medium-sized or even tiny-scale and are set up for a short time, mainly refers to the companies listed on GEM. They mainly involved in the high-tech business. And high-growth is their biggest characteristic. Venture’s research and development activities are on behalf of the company’s potential future growth and competitiveness. The information about the R&D of the companies is important for investors. In view of the above characteristics of venture enterprises and R&D’s important role in venture enterprises, this paper studies its R&D influence on corporate value. According to the results of the study and comprehensive considering the characteristics of venture enterprises, we proposes some corresponding suggestions.Learning from existing research, this paper chose the the GEM listed companies’ annual report data from 2009 to 2013 as sample. Based on the R&D’s characteristics, the core competition theory, enterprise value theory and signaling theory, we measured the enterprise value by Tobin’s Q. And then through building three multiple regression analysis models, descriptive statistics, correlation analysis and regression analysis, we studied the relationship between R&D investment and enterprise values. The results showed as follow:Firstly, the GEM listed companies’ R&D intensity was significantly positively correlated with Tobin’s Q, and the R&D intensity can increase the enterprise value. Secondly, R&D investment lag the growth of enterprise value. Finally, the GEM listed companies’ R&D has a cumulative effect on the promotion of enterprise value, and with the accumulation of R&D, the influence on the enterprise value coefficient is larger and larger.According to research findings, combining with the characteristics of Chinese GEM and related policies, the paper suggests: Firstly, standardize the development of information disclosure. Making sure that GEM disclose the R&D infromation and the use of the R&D funds accurately, completely and clearly. Secondly, in order to making the R&D investment quickly converted to enterprise value, we need to strengthen the management of R&D funds. Finally, the GEM should sustained invest funds in R&D activities, and actively carry out R&D activities for the enterprises’ long-term development.