Research On The Influential Factors And Economic Consequences Of Enterprise’s R&D Investment

With the advancement of knowledge economy, technical innovation oriented strategy has become the key drive of economic growth. For enterprises, the continuous R&D investment is an important way to gain competitive advantage and realize sustainable development, so research influence factors and economic consequences of R&D investment of enterprises that as main body of innovation has important theoretical and practical significance.Firstly, carries on empirical research by R&D data that listed LED enterprises disclosed from 2009 to 2013, this paper studied on the influential factors of enterprise’s R & D investment, the study found:(1) There is the inverted "U" type relationship between enterprise’s R & D investment and government subsidy in the main board sample group, while the relationship is "U" type in the SME and GEM board sample group. (2) Executive holdings don’t have a significant impact on main board listed LED enterprises’ R & D investment, but there is a significant positive relationship between executive holdings and enterprise’s R & D investment in the SME and GEM board sample group. (3) The overall risk level of executives and the proportion of men among executives both have a significant positive correlation with enterprise’s R & D investment; the percentage of executives with science and engineering background is positive correlated with enterprise’s R & D investment in the SME and GEM board sample group. (4) The largest shareholder’s holding ability helps to increase R & D investment for SME and GEM board listed enterprises. (5) With the advancement of enterprise life cycle stage, enterprise’s R & D investment tends to decrease. Then, we constructed multiple regression models and carried on empirical test to study the economic consequences of enterprise’s R & D investment, the study found that:in the short-term, listed LED enterprise’s R & D investment will have a negative impact on its financial value and market value, but the lagged two period R & D investment has a positive effect on the current financial value, indicating that the research and development cycle of LED enterprises is about two years, two years later, R & D activities can turn into actual productivity and create profits for the enterprises; in addition, there is some lag for the market investors’response to the positive news regarding enterprise’s R & D investment. Lastly, based on the in-depth analysis and interpretation of the empirical results, this paper proposes countermeasure and suggestions for promoting enterprise’s R & D investment.