Correlation Research On R&D Investment And Enterprise Value Of Chinese Listed Companies

The research on the influencing factor and effect of enterprise R&D investment have been an international frontier areas for many years. Due to China's capital market imperfections and the non-mandatory disclosure policy on R&D investment, the domestic research are less.With the development of market economic, more and more chinese enterprises realize that R&D activities are the foundation and key to improve the enterprise's core competitiveness. But the empirical researchs are lacked about whether R&D investment could pomote the growth of enterprise value or not. Based on these cases, the theory basisi of R&D investment, enterprise value and value creation are analysed, empirical research approach is used, the 189 listed companies in 2008 china stock market are regard as research objects, the annual published R&D data are used, the absolute amount of R&D investment, the rate of R&D investment and R&D investment per stock are selected as explanatory variables. ROA, Tobin's Q and other performance indicators are regarded as explanatoried variables, the research model are constructed by R&D investment and enterprise value, the correlation between R&D investment and corporate value was analyzed from two aspects: the account value index and the market value index.The empirical study found that: on the finance value hand, a significant linear correlation exist between ROA and the rate of R&D investment. A significant positive correlation between R&D and financial value is proved. Robustness test also proved that a significant linear correlation are existed among R&D investment and the main business income, operating income, operating profit, net profit. The correlation is the most strong between R&D investment and the main business income. The correlation is the more strong between R&D investment and business income, they are a significant strong correlation. The corrlation also exist among R&D investment and operating profit, net profit, but the corrlation of R&D investment among operating profit and net profit are weaker than R&D investment among the main business income and business income. At the same time, the effect to net profit is stronger than operating profit, and the effect to main business income is stronger than business income; At the market value hand, no linear relationship are existed between the rate of R&D and Tobin's Q values, the same is between R&D per stock and stock price. This shows that these value created by R&D investment have not been enough paid close attention as the result of the overall level of China's low R&D investment and non-mandatory disclosure policies on R&D investment, so the market have not recognited it.Finally, according to the conclusions of this paper, the suggestion that Chinese enterprises should increase R&D investment is given. in order to improve R&D investment revenue, the road of independent innovation should been followed. The choice of R&D investment and R&D management should enhance. On the other hand, the government should improve the accounting policies, the mandatory disclosure of R&D investment should be implemented. At the same time, the government should encourage enterprises to increase R&D investment by tax concessions, loans provision, set up an Innovation Fund and other measures etc.