The Research Of R&D Expenditure And Earning Persistence

As we all know,under the circumstance of today's fierce competition in this world,all is due to the competition of the talent,the science and technology innovation power.The research and development(R&D)activities of the Enterprises are the source of scientific and technological innovation,which are also the key for the companies to develop the core competitiveness and the ability of sustainable development.How much a company invests in research and development that directly reflects the enterprise's technological innovation capability,thus reflects the enterprise's core competitive ability and competitive advantage.In recent years,from national macro-level to the enterprise micro-level,they are all increasingly aware of the importance of science and technology innovation,and attaches great importance to the research and development activities.The proportion and intensity of R&D investments of the whole society have been increasing.This paper is based on the above background.From the perspective of earning persistence,we use all the A-share manufacturing companies,which are listed before December 31,2006,as our research samples.The research range is from year of 2007 to 2011.In this paper,we use empirical research method and build multivariate regression line model,so that we can empirically test the relationship between R&D investment and earning of sustainability.We found that the R&D Expenditure has significant positive correlation relationship between earning persistence.This result shows us that increase the intensity of R&D investment is beneficial to maintain the sustainability of enterprise earning.In addition,we also found that:(1)in general,the condition of the R&D information disclosure of listed company is improving,but still exist many problems.(2)From year of 2008 to 2010,the R&D intensity of the sample companies increases year by year,which is respectively 1.41%,1.97%,2.04%.But relatively speaking,such R&D intensity is still insufficient.(3)The correlation relationship between the size of company and earning persistence is weakly negative.According the conclusion of this research,we come up with the following countermeasure and suggestion:(1)strengthen and improve the regulation for the enterprises R&D information disclosure,(2)enhance the intensity of the R&D investment,(3)strengthen the Regulation and control of the R&D investment,ensure the coherence of the R&D spending,thus improve the efficiency of the R&D investment.