Research On The Effect Of R&D Investment As Profit Assessment On Total Factor Productivity

In the new stage of development,the party and the state put forward high quality economic development,which put forward requirements for the high quality development of state-owned enterprises.In view of the particularity of state-owned enterprises,establishing a reasonable supervision mechanism is an effective way to guarantee the quality and efficiency of state-owned enterprises.SASAC in 2004 promulgated the interim regulations,head of the central enterprise operating performance evaluation,on the operating performance directly under the State Council of central enterprises supervision and inspection,the provincial and municipal SASAC reference to adjust measures to local conditions for the establishment of the condition of the local state-owned enterprises operating performance evaluation standard,and the practice exploration and repeated revision.According to the Assessment Measures,R&D investment can be regarded as profit in a certain proportion according to the conditions when assessing the performance of senior executives of State-Owned enterprises.This management system innovation is an important measure to optimize the corporate governance of state-owned enterprises.It has important theoretical and practical significance to study the influence of R&D investment as profit assessment on factor resource allocation of state-owned enterprises under the background of highquality development.This paper discusses the influence of performance appraisal system on total factor productivity of state-owned enterprises.Taking the management system innovation of "R&D investment as profit" assessment as the entry point,and based on theoretical analysis,a multi-period differential difference model is constructed.Empirical research is conducted using the data of state-owned listed companies from 2010 to 2019 to test the effect of R&D investment as profit assessment on total factor productivity of stateowned enterprises.On this basis,the paper classifies the impact of assessment on different types of state-owned enterprises.Furthermore,this paper analyzes how R&D investment as profit assessment has an effect on total factor productivity of state-owned enterprises,and investigates the mediating effect of executive compensation incentive and technological innovation.The results show that,when assessing the performance of senior executives of state-owned enterprises,taking R&D investment as profit "plus back" effectively promotes the improvement of total factor productivity of enterprises,and the conclusion still holds after passing the robustness tests such as parallel trend test and adding dummy variables.In the heterogeneity analysis,it is found that compared with non-competitive state-owned enterprises,labor-intensive state-owned enterprises and central and western state-owned enterprises,this assessment has a more significant effect on improving total factor productivity of competitive state-owned enterprises,capital-intensive state-owned enterprises and state-owned enterprises in the eastern region.Further analysis shows that it affects the efficiency of resource allocation through the compensation incentive effect on executives and the promotion of enterprises’ technological innovation activities.The purpose of this study is to validate the performance appraisal system of stateowned enterprise of total factor productivity effects,from the Angle of performance appraisal,provide some advice for the development of state-owned enterprises with high quality,for example,continue to strengthen the appraisal of state-owned enterprise executives,matching quantifiable indicators to improve the evaluation index system building,accurate classification assessment of enterprises.At the same time,it is also hoped that this study can provide some reference for deepening the reform of stateowned enterprises in China.