An Empirical Study On Relation Between R&D Investment And Enterprise Performance

Putting forward along with the "Made in China 2025" plan in China, the innovation development strategy has been raised to a new height again. Along with the globalization and the economic problem facing China, innovation has become the important means to accomplish economy recovery and to push forward the reform of the supply side. Economic development cannot leave the enterprise development’s support. In the present business environment facing the enterprises, innovation and development capacity is related to the future prospect of the enterprises. As the most important source of enterprises to realize innovation ability raising, Enterprises’R&D activity increasingly attracts the attention of academia.From the basis of the innovation theory, this article firstly emphasizes the core role that the technical innovation plays in promoting enterprise development. The board of directors is the core of the enterprise strategic decision authority. To optimize the structure of the board of directors is very important to the development of the enterprise. R&D input strategy is a very important decision made by the board of directors. Ensuring enterprise’s R&D resources to effectively translate into enterprise performance, the board team should establish a perfect management system. Second, through reviewing the literature, we found that most scholars seldom consider how corporate governance’s factors affect the output of R&D investment on enterprise performance. Then, based on Upper-echelons Perspective and Group Decision Theory, when studying the influence of corporate R&D investment on enterprise performance, the paper consider the regulating effect of the heterogeneity of the board of directors. This paper presents a primary effect hypothesis and four adjustment effect hypothesis.The companies listed on the gem are mostly of high and new technology basis, the company scale is small, the gem asset-liability ratio is lower, and the gem companies’setting up time is shorter, the corporate governance system is not perfect. Because of the characteristics of the growth enterprise market, this paper chose the gem companies as the study sample source. The 148 listed companies are selected as the research sample, extracting 444 annual observations, forming three years balance panel data. The paper uses the logistic regression method to verify 5 hypothesis. And the empirical results show that the enterprise R&D input can produce a significant enhanced performance. The Heterogeneity of education background of the board of directors and the Heterogeneity of industry background of the board of directors can affect the relationship between the enterprise R&D investment and enterprise performance with the existence of the adjustment effect. But the adjustment effect of function’s heterogeneity and age’s heterogeneity of the board have no empirical validation.In this paper, the empirical analysis of the results can be used for the advice of how to improve the innovation decision-making of listed companies, how to set the board’s structure and how to execute decision effectively.