A Research On The Correlation Between R&D Input And Corporate Performance Of High And New Technology Enterprises

In recent years,China’s R&D Input(including R&D investment and R&D personnel)has been increasing year by year.The vast majority of China’s annual R&D expenditure is on the enterprises’ level.It means that enterprises have become the main driving force and the source of China’s technological progress and economic growth.As the innovative leader,high and new technology enterprises will undoubtedly become the important backbone in the economic development of the whole country.In this background,researches on the R&D of high and new technology enterprises and their economic effects will not only provide references for enterprises to make innovation strategies at the micro level,but also have important significance for the national economic development at the macro level.The impact of R&D input on corporate performance has been widely concerned in the academic circle and has become one of the hot topics.However,due to shortage of knowledge on the mechanism of R&D’s influence on corporate performance,for a long period of time,it has become the "black box" difficult to solve.Caused by different sample and intervals,the results of the study could be quite different:On the one hand,the majority of research works show that R&D input has a positive effect on corporate performance,and on the other hand,there is evidence that innovation activities have lagged,nonlinear or even negative effects on corporate performance.Therefore,by applying relevant management and economics theories,introducing mediating and moderating variables,the mechanism of the "black box" an be investigated with more depth.It could provide a new theoretical explanation and empirical evidence for the impact of high and new technology enterprises’ R&D input on their corporate performance.It has important theoretical and practical significance.From the "input-output" perspective,the article does theoretical analysis and empirical research on the relationship between R&D input and corporate performance of high and new technology enterprises.By using relevant data of high and new technology A-share listed companies on China’s Shanghai and Shenzhen Stock Market from 2011 to 2016 as the research sample,with descriptive statistical analysis and multiple linear and nonlinear regression analysis methods,this article does an empirical analysis of the mediating effect of innovation output and the moderating effect of enterprises heterogeneity in the relationship between R&D input and corporate performance,some useful conclusions are drawn.The article’s main research work and content are as follows:Firstly,according to the research topic and content of this paper,it reviews and teases the related research works on the correlation between R&D input and enterprise innovative output,the correlation between R&D input and corporate financial performance and market value performance,and gives a brief comment on the research works,which lays the foundation for this study.Secondly,the relevant concepts involved in this article are defined,and the theory of Schumpeter’s innovation theory,the Neoclassical Economic Growth theory,the Neo Schumpeter theory and the Endogenous Economic Growth theory are expounded,which provide the theoretical basis for the correlation between R&D input and enterprise performance.The Resource Based theory,Knowledge theory,Industrial Analysis theory and Dynamic Capability theory in Strategic Management field are stated,in order to lay a theoretical foundation for the influence of innovative output and enterprises heterogeneity on the relationship between R&D input and corporate performance.Thirdly,this paper puts forward the research hypothesis that the overall effect of R&D input on corporate performance should be inverted U shaped.In the fifth chapter,methods as descriptive statistical analysis,correlation analysis,multiple linear and nonlinear regression model,and panel data fixed effect test etc.are applied to examine the impact of the R&D input(investment and personnel)of the current year and the lag of one year and two years respectively,on corporate financial performance and market value performance,so as to verify the hypothesis of the overall effect.Fourthly,this paper puts forward the research hypothesis that the innovative output of high and new technology enterprises plays a mediating effect in the relationship between R&D input and corporate performance.In the sixth chapter,methods as descriptive statistical analysis,stepwise regression model with multiple linear and nonlinear mediating effect,panel data fixed effect test and etc.are applied,it examines and compares the partial mediating role in the overall correlation of incremental innovative output and stock innovative output,and the innovative output of different innovation levels.Fifthly,this paper puts forward the research hypothesis that the different heterogeneity characteristics of high and new technology enterprises have a mediating effect in the relationship between R&D input and corporate performance.In the seventh chapter,the methods of descriptive statistical analysis,t-test on the difference of averages between sample groups,multiple linear and nonlinear moderating effect stepwise regression model and panel data fixed effect test are applied respectively.The moderating effect of heterogeneous characteristics such as resource endowment,governance structure and external environment is tested,and the research hypothesis is verified.Sixth,after the empirical test of each chapter in the fifth,sixth,seventh chapter,the methods of changing variables,adjusting models,piece-wise linear regression and t-test are used to test the robustness of each chapter,and the results all support the conclusions of each chapter respectively.Finally,the eighth chapter is the conclusion of the study.Based on the above chapters,this chapter summarizes the main conclusions and suggestions,points out the limitations of this research and puts forward the future research directions.Through the empirical analysis,the main conclusions of this article are as follows:1.R&D input of capital investment in high and new technology enterprises has an inverted U relationship with corporate financial performance and value performance.Whereas R&D personnel input has positive impact on corporate financial performance and market value performance.Both investment and personnel,the impact of R&D input on corporate performance has lagged effect.The corresponding R&D input of capital investment to the best financial performance of the enterprise is lower than that of the highest market value performance.2.The effectiveness of innovative output plays an important role in the relationship between R&D input and corporate performance.Both R&D investment and personnel input have positive linear contributions on incremental innovative output with lagged effect.R&D input of capital investment constitutes an inverted U effect on current and lagged stock innovative output,while R&D personnel input only constitutes linear positive effect on stock innovative output.Both the incremental and stock innovative output have significant positive effects on corporate performance.Innovative outputs of different quality have different effects on the corporate performance.Patents for invention have more significant improvement effects on corporate performance than the other two types of patents.Compared with incremental innovative output,stock innovative output is a more important driving force for corporate performance.3.The different characteristics of enterprise heterogeneity in resources endowment,internal governance structure and external industry environment have a moderating effect on the relationship between R&D input and corporate performance:heterogeneity characteristics on the scale of enterprises,state-owned equity nature,ownership concentration and cash strength will strengthen the inverted U relationship between R&D input and corporate performance,which means due to the moderating effects of the above factors,with the increase of R&D input,corporate performance’s rising and declining tendency both become more obvious.YWhile the heterogeneity on equity balance degree and competition intensity of industry will weaken the inverted U relationship between R&D input and corporate performance,which means with the increase of R&D input,corporate performance’s rising and declining tendency will both be slowed down.The innovation of this paper is mainly reflected in the following aspects:First,this paper breaks through the limitations of the previous research works,which examine the impact of R&D input on corporate performance merely from a single dimension.From two dimensions of R&D input(investment and personnel),this paper studies the impact of R&D input on the financial performance and market value performance(two dimensions)of high and new technology enterprises.From the economics perspective of "input-output",it introduces an important mediating variable of innovative output.From the perspectives of resource endowment,internal governance structure and external competitive environment,it examines the moderating effect of enterprise heterogeneity,enriching the research content in the research field of the correlation between R&D input and corporate performance,expanding the research perspective and making the research more comprehensive.Next,the empirical model of this paper is different from the linear regression model of direct and one-way effect between R&D input and corporate performance,which is overemphasized and widely used in previous empirical research works.Taking into account the lagging effect on the impact of R&D input on corporate performance in reality,this paper constructs a nonlinear regression model with lagging and quadratic terms.It further constructs stepwise regression model to test the mediating effect and the moderating effect with a mediating variable.And then,combined with the theory of economics and management,it analyzes the nonlinear influence mechanism of R&D input on corporate performance,enriches and extends the empirical research model and method of R&D input and corporate performance,which makes the research content closer to the reality,and makes the research conclusion more robust.Finally,the empirical findings of this paper reveal the "inverted U" relationship between R&D input and corporate performance,and this correlation is influenced by the mediating effect of innovative output and the moderating effect with a mediating variable of enterprise heterogeneity,which makes up for the shortcomings of previous empirical research works.The previous research emphasizes that R&D input has only positive contribution and effect on enterprise performance,so that it cannot explain the negative effect in many empirical studies.The research in this paper makes the conclusion more objective and provides a basis and useful reference for theoretical explanation and enterprise decision.