The Relationship Between Enterprise R&D Investment, Income And Systematic Risk

Our country's economic development pattern has taken great changes with the rising of the information society. It has transformed from the extensive pattern which dependent on resources to the independent innovation. Strengthening the ability of independent innovation and constructing the innovation country has become the aim of stratagem of economy development. However; the enterprise is the main body of market campaign. So, to promote the ability of independent innovation and to construct the innovation country, we must strengthen the enterprise's status in their independent innovation. At the same time, the enterprise's innovation ability can not be improved without R&D investment, which is the source and foundation of the enterprise's independent innovation. Enterprise's research and development investment may bring about the excess income, but it can also increase the systematic risk of the enterprise. This thesis plans to elaborate the research form the point of view of the real diagnosis.To do the research of the relationship between R&D investments and income, this thesis took the national enterprise technical centers as the sample, which is the main part of the R&D investment. Based on some certain standard, the thesis has chose 215 enterprises from 438 national enterprise technical centers and picked up their incomes of 2005 and 2006 to make the compare horizontally and vertically. The result showed that: (1)The average income of the domestic listed enterprises is much higher than the market's. (2) During the two years, the average income of the totally listed enterprises is higher than the partly ones. (3) From 2005 to 2006, the range of increase of the average income rate of the enterprises is much higher than the market's.About the research of the relationship between R&D investment and systematic risk, it is difficult to get the investment data to make the quantitative analysis, because of the incompulsory publication of the R&D investment data. So this thesis took the high technology enterprises of Shan Xi province as research target, analyzed the features of Rubinstein and Mandelker&Rhee's model of systematic risk and made some adjustment to their method for expanding the extend of use. The adjusted model can used to measure the systematic risk of the unlisted companies. The results showed that: (1) Enterprise's R&D investment has a clearly negative relationship with the systematic risk. (2) It is strongly positive relationship between R&D investment and the inherent risk of the enterprises. (3) It has nothing to do with the enterprise's DOL and DFL.Taking the above two aspects of the empirical analysis as a whole, it is concluded that the R&D investment can bring excess income and lower systematic risk for enterprises. This will promote the enterprise to intensify their efforts of R&D mvestment and decrease the risk effectively.