Research On The Impact Of R&D Investment On Financial Performance Of Manufacturing Companies Listed On The GEM

From the proposal of "innovation-driven development strategy" in the report of the 18 th National Congress of the CPC to the report of the 19 th National Congress,which clearly pointed out that innovation is the first driving force leading development.From the "Made in China" to the "Created in China",innovation ability has become an important driving force for social and economic development.And the manufacturing companies listed on the GEM,which is the main battlefield for technology R&D and product innovation in manufacturing,have received much attention.R&D investment is the basic guarantee for enterprise innovation,and the corporate executives influence the formulation of R&D decisions and the implementation of R&D activities.Faced with the characteristics of high risk and long cycle of R&D investment,the conflict of interests caused by the separation of the two powers often causes executives to consider their own interests and reduce the enthusiasm for R&D activities.Therefore,it is particularly necessary to implement the equity incentive mechanism to guide executives to act in line with the interests of enterprises.Based on this,the paper studies the impact of R&D investment on financial performance of manufacturing companies listed on the GEM,and discusses the adjustment effect of the executive equity incentives.By combing the foreign(internal)relevant literature,combining innovation theory,principal-agent theory and incentive theory,this paper puts forward reasonable hypotheses on the impact of R&D investment on financial performance and its lag,and the regulatory effect of executive equity incentive on financial performance.Based on 837 sets of data from 279 GEM manufacturing listed companies from 2015 to 2017 as samples,The hypothesis was tested by factor analysis,correlation analysis and multiple linear regression analysis.The results show that:R&D capital investment intensity and R&D personnel investment intensity have significant positive effect on the improvement of corporate financial performance and this effect has a lag;executive equity incentives have a significant positive adjustment effect in the impact of R&D investment on corporatefinancial performance.According to the research conclusions,this paper puts forward corresponding suggestions from the perspectives of enterprises and governments,in order to strengthen the government and the manufacturing companies listed on the GEM attach importance to the whole process of R&D activities,increase the investment of R&D funds and R&D personnel,and enhance independent innovation,so as to achieve the promotion of corporate financial performance and long-term development,and contribute to the transformation and upgrading of China's manufacturing industry.6figures,20 tables,56references.