The Causal Effect Of R&D On Firm Performance Of Listed Companies In China

The Chinese economy is undergoing a transition from resource-driven to innovation-driven.It is necessary to continuously increase innovation investment and encourage enterprises to innovate independently.From a macro perspective,increasing R&D and promoting the production and development of new technologies are important policies and measures related to the future growth of China's economy.From a micro perspective,more and more companies realize that in order to seize the commanding economic development and enhance core competitiveness,technological innovation must be carried out.In the past researches on R & D investment and firm performance,most of them stayed at the level of correlation research,and paid less attention to the endogeneity and sample selection.This article aims to solve the problem of sample selection through the method of Propensity Score Matching.In order to obtain a more accurate quantitative relationship between R&D and firm performance,enriching the previous research conclusions.Based on the existing research,we select the data of China's listed companies,using factor analysis of enterprise performance comprehensive evaluation to obtain a more comprehensive measure of corporate performance score,and to compare the differences between single performance indicators and composite performance indicators.With the help of PSM,we eliminate the influence of sample selection to a certain extent.The empirical research explores the average intervention effect of R & D behavior on firm performance,and compares the R & D investment intervention effect of different performance indicators.It is found that the comprehensive performance is more reliable for explaining the quantitative relationship between R & D investment and firm performance than a single performance indicator.The result of PSM showed that a simple linear regression significantly underestimated the positive impact of R & D on firm performance.The differences in the intervention effects of R & D behavior under different matching methods are small,and the intervention effects of R & D behavior are estimated to be relatively stable.The improvement of R & D behavior on corporate performance is about 3 units.R & D behavior mainly affects the company's overall performance by positively affecting its cash capacity and negatively affecting its development ability.Further,on the basis of PSM,we use generalized propensity score matching to empirically explore the dose response and processing effect of R & D intensity of different types of listed companies on corporate performance.It was found that except for GEM listed companies,the dose-response function curve of R & D investment to firm performance showed a "U-shape".The R & D intensity corresponding to the lowest performance of all listed companies,A-share listed companies,and SME listed companies is 34%,29%,and 56%,respectively.The dose-response function curve of R & D investment on corporate performance of GEM listed companies shows an "inverted U shape",and the R & D intensity corresponding to the highest point of firm performance is 15%.From the perspective of the treating effect function of R & D investment on firm performance,the treating effect of listed companies' R & D investment on firm performance is linear.Except for GEM listed companies,the treating effect is greater than zero,and the firm performance improves with the increase of R & D intensity obviously.The effect of R & D investment treating results shows that for all listed companies,A-share listed companies and SME listed companies,for each 1% increase in R & D intensity,the firm performance will increase by 2.468 unit,3.467 unit,and 1.137 unit.For every1% increase in the R & D intensity of listed companies on the GEM,the firm performance will decrease by 0.102 unit.