As the globalization process is speeding up every day, the self-innovation ability has become a key determinant of a nation’s competitiveness. As enterprises are the backbone of a nation, China’s strategic transformation from "Made in China" to "Created by China" relies greatly on Chinese enterprises’ innovation ability. State-owned enterprises play a key part in China’s economic system, occupying the strategic national-security related industries in China. And they have taken the responsibility as leader in China’s technology development system. A good example is their deep involvement in the science and technology projects of the "11th Five-Year plan" and "12th Five Year Plan", while they also enjoyed the a disproportionately amount of subsidies from the government. So it’s very meaningful to study the role that the state ownership in the companies plays in affecting the R&D activities of the companies.On the basis of prior studies, this paper systematically investigates the influence of state ownership on companies’intensity of R&D expenditure, R&D output performance and the value relevance of R&D expenditure. Using panel data of367listed companies in China’s Shanghai and Shenzhen Stock Exchange, the following empirical findings shows that:state ownership has a negative influence on the intensity of R&D expenditure; the R&D expenditure has a great positive influence on companies’current and next operating income but the state ownership will reduce this effect; R&D expenditure has a positive influence on the market value of companies and the state ownership has a negative influence on the value relevance of R&D expenditure. |