Research On The Impact Of R&D Investment On Earnings Persistence In New Energy Automobile Industry

Technological innovation is the soul of enterprises to form core competitiveness,and research and development is the source of enterprise innovation.The new energy automobile industry plays an important role in Chinese industrial upgrading policy.Along with the deepening of energy and environmental pressures,the emphasis and investment of new energy vehicle vehicles on R&D activities is not only related to the survival and development of the company itself,but also plays a key role in the layout and implementation of Chinese energy development strategy.Whether the results of R&D investment are significant are mainly reflected by the economic benefits of the company.As an important indicator of corporate profitability,accounting earnings have received wide attention from all walks of life,especially the earnings persistence indicators that measure earnings quality.This paper uses a combination of theory and empirical methods.Firstly,the relevant theoretical basis and literature are sorted out and literature reviews are made,and then the correlation between R&D investment and earnings persistence is theoretically analyzed.Then,based on the data from 2012-2017 of listed companies in the new energy auto industry,the Principal Component Analysis method is used to determine the comprehensive indicators of earnings persistence.Then the empirical analysis of the impact of R&D investment in new energy auto industry on earnings persistence is carried out,and the lag and accumulation of R&D investment on earnings persistence are studied.The empirical results prove that the R&D investment of the new energy auto industry is negatively related to the earnings persistence in the current period.The impact of R&D investment on earnings persistence is lagging.And in the first phase of lag,the positive impact of R&D investment on earnings persistence is highest,while in the second phase of lag,the coefficient is significantly reduced.The impact of R&D investment on earnings persistence is cumulative.The cumulative impact of the two phases of R&D investment on earnings persistence is most pronounced.Combining the data of Futian Company,a representative of the new energy automobile industry,as a case study,the results obtained confirm the above conclusions.Through empirical research,we also found some problems in the R&D investment of Chinese new energy auto industry,and made corresponding suggestions for enterprises,governments and investors.