Study On The Impact Of Research And Development Investment On Enterprise Performance

Innovation theory considers that innovation can bring economic rent for enterprises and provider more opportunities to choose products and service for consumes by developing new products.Therefore,innovation can benefit for consumes and create more markets and profit opportunities for enterprises.What’s more,R&D inputs are the foundation of enterprises innovation and enterprises must cultivate independent innovation capacity through continuous R&D inputs to provide effective driving force for continuous development.R&D inputs can provide the growth of enterprises’ performance.However,in reality,the same R&D inputs provide different growth of performance for different enterprises.It states that some other factors influence the relationship between R&D inputs and performance.Institution-based theory emphasizes that institution plays a decisive role in enterprises’ behavior and thinks that different institution leaders to different enterprises’ behavior.Ownership is the core of enterprises’ institution and has an important effect for the relationship between R&D inputs and performance.Since La Porta et al.put forward the concept of ultimate controlling shareholders through tracing the chain of ownership control,scholars found that listed enterprises equity is concentrated in most countries and is widespread in the hands of ultimate controlling shareholders.Therefore,this paper contents study the effect of not only direct ownership structure but also the ultimate ownership structure on the relationship between R&D inputs and enterprises performance.The main contents of this paper are as follows:(1)researching the effect of R&D inputs on performance,(2)studying the moderating effect of ownership on the relationship between R&D inputs and performance,(3)discussing deeply the moderation effect of state-owned shares on the relationship between R&D inputs and performance,(4)investigating the moderating effect of ultimate ownership structure on the relationship between R&D inputs and performance.The main conclusions of this paper are as follows:(1)R&D inputs have positive effects on the enterprises performance.The higher the inputs,the better the performance.(2)State ownership has a negative effect on the relationship between R&D inputs and performance.State-owned shares can weaken the positive effect of R&D inputs on performance.(3)Cash-flow rights of ultimate controlling shareholders have negative effects on the relationship between R&D inputs and performance.(4)Divergence between cash-flow rights and control rights of ultimate controlling shareholders have negative effects on the relationship between R&D inputs and performance.According to the above conclusions,this paper puts forwards some suggestions to improve the enterprises innovative capacity.It has a certain reference significance for the reform of Chinese state-owned enterprises and the transformation of the pattern of economic development.