Empirical Research The Cost Of Sales, R & D Spending And Corporate Performance Of Gem Listed Companies

Faced with global diversified and complicated economic environment in 21st century, Chinese enterprises will face more challenges of the global marketplace and competitors, the business uncertainty and risk in company’s future is increasing. The GEM market was established no more than six years, most companies listed in GEM are those and medium-sized high-tech enterprises, they are set up a short time but in a stage of rapid development. Due to the development prospects of these high-tech companies are not as luminous as traditional industries, we need to deeply research the profitability and growth capacity of these companies. Innovation and marketing are two basic functions of commercial enterprises. R & D activities is to create value-added products and services, marketing activities will open the way to pass the value of value-added products and services. If companies want to remain competitive in an increasingly competitive market environment, it is necessary to carry out R & D and marketing activities to make value creation and value delivery racing together. In this context, it is very necessary to deeply analysis the he relationship between cost of sales, R & D spending and corporate performance of the companies listed on GEM.Framework and main content of this paper can be summarized as follows:Chapter 1 is Introduction part, to introduce the research background and significance of this paper and describe the research ideas, innovations and shortcomings in existing methods. The second chapter introduce the basis of relevant theories and review the previous literature. The basic theory of reference include Differentiation Strategy Theory, Core Competence Theory, Innovation and Innovation Diffusion Theory. Then, this chapter combed and evaluated the studies of literature in the field. The third chapter introduce the features and present situation of China’s GEM and GEM listed companies. The fourth chapter describe the cost of sales, R & D spending mechanism for profitability and growth capacity, and establish relevant assumptions. The fifth chapter analysis selected sample data and correlation variable by multiple regression model. The sixth chapter summarizes the findings and suggestions, then point out the deficiencies in the present study and the prospects to future studies.The innovation of this paper is to combine the characteristics of GEM, include the cost of sales and R & D spending of the companies listed in GEM in the model to study their impact on corporate profitability and growth capacity, and special study the manufacturing industries and IT industry. Through empirical analysis, we found that for the GEM listed companies, cost of sales and R & D spending play a positive role to promoting the company’s profitability and growth ability, but this role of R & D spending has lagged effects. For different industries, there are two different effects, manufacturing company’s sales costs have stronger positive promoting effect than the IT industry, and IT industry’s R & D spending have stronger positive promoting effect than the manufacturing industry, and the lag effect of R & D spending does not exist in industry.