| The rapid development of science and technology pushes us into the knowledge economy time, which intensifies the competition both in the home and abroad markets, ever-increasing companies having been aware of the significance of innovation to its long-term development. R&D is the source of the innovation as well as the main approach to forming stronger enterprise core competition. Aiming to guarantee a long-term development, enterprises both at home and abroad treat R&D as one of the most important technology strategy. This paper, taking the medium & small-sized technological enterprises as the subject, tries to analyze the correlation between the R&D investment and financial performance from the perspectives of the micro level and the enterprise finance, which may serve as a helpful guidance to enhancing the effectiveness of R&D investment aiming at improving the financial performance.This paper, based on revising the relevant literature as well as the theories, analyzes the correlation between the R&D investment and financial performance. And then it builds the models of correlation between the intensity of the R&D investment and financial performance both from the profitability performance level and the development ability level. And finally an empirical study is conducted based on the published information between 2011 and 2013 of 93 enterprises of medium & small-sized board stock market of SZSE.The empirical result suggests a significant positive correlation between the intensity of the R&D investment and the profitability performance. The result also reveals the hysteresis quality and the cumulative effect of the R&D investment intensity on the profitability performance. The R&D investment intensity, however, doesn’t correlate to the development ability of the company. Based on the conclusion, this paper proposes some suggestions to the medium & small-sized technological enterprises for them to consult when making decision on R&D investment. |
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