An Empirical Research On R&D Expenditure,Marketing Expense And Corporate Performance

Carrying out the basic idea of "innovation,coordination,greenness,openness and sharing" and implementing the innovation-driven development strategy in an all-round way are important contents of Xi Jinping's socialism with Chinese characteristics in the new era.Peter Drucker believes that in the new economic era,the "managed economy" has transformed into an "innovative economy".Philip Kotler notes that marketing,like innovation,is one of the most important functions of an organization.The theory of "smiling Curve"points out that in the industrial chain formed by R&D,production and sales,R&D and sales at both ends have higher added value and lower added value in the middle of production.Therefore,the enterprise should develop or upgrade towards the two ends of the "smiling curve".This paper takes Chinese manufacturing listed companies as the research object and makes use of the annual data of manufacturing listed companies from 2007 to 2015 in Shanghai Stock Exchange and Shenzhen Stock Exchange to make a statistical analysis on the relationship between technological innovation,marketing and company performance,and do an empirical examination of the "smiling curve" theory.According to the level of R&D expenditure and marketing expense,the research objects are divided into four groups:(high R&D,high marketing),(high R&D,low marketing),(low R&D,high marketing)and(low R&D,low marketing),studies the performance differences between enterprises with different R&D and marketing investment.Through statistical analysis,it is found that R&D and marketing have an impact on the financial performance and market performance.R&D has a greater impact on financial performance than marketing,and marketing has a greater impact on market performance than R&D.The regression analysis of all the samples shows that:(1)R&D expenditures for the current year have no significant effect on the financial performance for the current year,but there are some lagging effects.R&D expenditures from the first 4 years to the first year are significant to the financial performance for this year positive influence.(2)Marketing expense ratio of this year has a significant negative impact on the financial performance of the current year;Marketing expense ratio of the previous year has no significant effect on the financial performance of the year;The first two years of sales expense ratio have a significant positive impact on the financial performance of the year.(3)R&D expenditures for the current year have no significant effect on the market performance of the current year;R&D expenditures in the first 5 years and the first 3 years to the previous year have a significant positive impact on market performance of this year with obvious lagging effect.(4)Marketing expense ratio of this year has a significant positive impact on the market performance of this year,with no lagging effect.(5)The interaction between R&D expenditure and marketing expense one year in advance has a significant positive impact on the financial performance and market performance of this year.Through further empirical tests based on growth and financial leverage,it is found that the impact of R&D expenditure and marketing expense on corporate performance is obviously different between high-growth companies and low-growth companies.There are some differences between high-debt companies and low-debt companies.That is to say,the specific impact of R&D expenditure and marketing expense on corporate performance is different due to growth and financial leverage.The above findings are of great significance to the deepening of enterprise reform,the formulation of accounting policies and the financial decisions of enterprises.Mainly in:(1)providing empirical evidence for the rationality of the "smiling curve",indicating the direction for the restructuring and upgrading of the enterprise.(2)The lagged impact of R&D and marketing expenses on corporate performance shows that the capitalization of R&D expenditure and marketing expenses is reasonable in the accounting treatment,which helps to further explore and further improve the accounting standards.(3)The lagged effect of R&D investment and marketing expenses shows that when establishing incentive mechanism and performance evaluation,it is unreasonable based solely on the company performance in that year,and we should give full consideration to the company performance in all the affected periods.(4)The impact of R&D investment and marketing expenses on the performance of the company means that it will also have an impact on the stock price.Therefore,R&D investment,marketing expenses and their changes are also important factors that can be referred to when investors make decisions.