Study On The Effect Of R&D On Performance Of The Listed Software Corporation

Currently, computer is widely used in all areas of the world. As a medium of interaction between human and computer, software has became one of the world’s fastest growing industry. China’s software industry started at 1950 s, through nearly 50 years development, and especially since the 1990 s, with the expansion of the domestic software market, China’s software industry began on a high-speed development of the road. In recent years, as the intellectual property become more important and the needs of domestication of software become more imperious, development of software industry has become the urgent needs to solve a big problem. At present, the number of listed companies in China’s computer software industry is increasing.Software industry developed rapidly, but the competition is also very intense.Software industry is a high-tech industry while technology base on research and development, therefore R&D investment is an cost for the software industry. This article will collect 80 software services companies’ financial data to analyze the relationship between R&D investment and performance, and to summarize and make recommendations.This article can be divided into two parts. The first part includes the previous literature review, an overview of technology innovation theory, introduction of software industry development. The second part is the empirical analysis. In this part the threshold regression model will be used to explain the relationship between R&D investment and its effect to the performance. The analyze will be based on 80 software services listed companies’ financial data from 2010 to 2013 period, a total of320 samples. Some previous studies had a similar structure, this paper will make further study on this problem and make the innovation,this article assumed that the impact of R&D investment on company performance have threshold effects, while it may also effect other factors’ efficiency. Therefore the coefficients of factors in the model will be different while the R&D investment is different. This paper demonstrates that the size of the R&D investment does have a significant effect on the coefficient of factors and make an explanation, and at the end of the article recommendations based on the results of empirical analysis will be made.