The Case Study On Company Performance Under The Influence Of R&D Investment Of Wanhua

Currently,China has become the world’s second largest economy,but according to the2020 Global Innovation Index report,China’s innovation capacity only ranks 14 th,which is still a big gap compared with many developed countries.However,R&D investment of enterprises often means high sunk cost and long investment cycle,and technical knowledge may have certain attributes of public goods,so for most enterprises in China,every decision on R&D investment will have a lot of risks.Therefore,how to control the risk of R&D investment within a reasonable range,and attract more enterprises to carry out innovative research and development through high returns in the future period after R&D,to cope with the increasingly fierce competition and industrial product change,almost every enterprise has been paying constant attention to the topic.In this thesis,the relationship between Wanhua Chemical research and development investment and economic effect as the research object,through the use of case analysis,trend analysis and event research method to explore the economic effect of its research and development investment,and according to the study summarizes the case enlightenment and some superficial suggestions.First,this thesis summarizes the existing domestic and foreign relevant literature,and introduces and defines the concepts of R&D,R&D investment,capitalization and expensing of R&D investment,and then appropriately expounds some theoretical basis for the development of this thesis.Secondly,this thesis briefly introduces the basic situation of Wanhua Chemical,as well as the basic situation and characteristics of China’s chemical industry.Then the motivation of increasing R&D investment in Wanhua Chemical is analyzed,and the research and development status of Wanhua chemical and China’s chemical industry is analyzed directly and indirectly.Furthermore,the research on the impact of R&D investment on performance of Wanhua Chemical was carried out from two aspects: financial performance and non-financial performance.Finally,according to the above analysis and research,the conclusion of the research on the economic effect of Wanhua Chemical R&D investment is summarized,and some enlightenment from this case is summarized.It is found that R&D investment is a long-term strategic behavior.After R&D investment is implemented,it needs a long period of time to integrate resources,give play to subjective initiative,and transform the R&D investment into scale effect to reduce unit cost.On the other hand,differentiated products can be formed to create new profit growth points.But R&D spending also is not once and for all and immediate,therefore also has a certain financial risk,especially to companies in large-scale R&D focus on debt service pressure at the same time,if in the case of a good financial situation,to all of the R&D expenses according to law,part of the tax effect.To sum up,this thesis tries to analyze the economic effect of Wanhua Chemical’s R&D investment from various aspects,and tries to bring a little reference value and enlightenment to other enterprises.