R&D Investment, R&D Subsidy And Enterprise Value

Nowadays, technology innovation is the key factor to be competitive in fiercecompetition among enterprises in the marketplace. As the core of innovation, R&D activitiesare important strategic investments for enterprises, and can provide motivation for long-termdevelopment. Based on the global studies&researches and comparing with ownership, sizeand R&D staff of corporations, from two dimensios, the finacial value and marketing value,this paper analyzed the influence of various enterprise ownerships towards R&D investment,R&D subsidy and enterprise value, and the significant impact on corporation innovationactivities, investor evaluation on R&D activities, and governmental policies for formulatingR&D support.There’re mainly four parts included: Part I introduces the background and thesignificance of this paper. Besides it also introduces briefly the content, methods and thedefinition of variables of the research. Part II introduces achievements of relative studies athome and abroad and describes current status of R&D investment and subsidy. Moreover itexplains the technology innovation theory, financing constraints theory, signaling theory,principal agent theory and nature of property right theory and putting forward hypothesesaccording to these theories. Part III is the empirical study part. It describes the steps of datacollection and filtering, constructs5empirical models based on the hypotheses of part II anddefines variables of the models. Furthermore it combines the descriptive statistics analysis,correlation analysis and multiple regression analysis to show that:(1) R&D investmentpositively influenced enterprise value.(2) Government R&D investment subsidy positivelymoderate the relationship between R&D investment and corporation value.(3) R&Dinvestment plays a more positive role to enterprise value on private companies thanstate-owned ones.(4) Government R&D investment subsidy also plays a more positive roleto moderate the relationship between R&D investment and corporation value on privatecompanies than state-owned ones.(5) In total sample and private enterprise sample,enterprise size moderate government R&D investment subsidy and enterprise value positively,but in the sample data of state-owned enterprise, the effect is not significant.(6) R&D staffintensity doesn’t take significant effect on moderating government R&D investment subsidy and enterprise value according to sample data. Part IV makes the conclusions, proposes thesuggestions and points out the limitations of the research.