An Empirical Study Between The R&D Investment And The Growth In GEM Listing Companies

With the increasing competition in the market, research and development activities as the source of the independent innovation ability, is the key to keep the enterprise core competitive advantages, to achieve sustainable development. Small and medium enterprises are not dominant in terms of money, the scale, wanting to survive only through technology innovation and master the core competitiveness. Therefore, the research and development activities as the source of technological innovation, get the attention of the government and enterprises more and more. According to statistics, enterprise is in a dominant position in our R&D activities, the GEM’S research and development ability and profitability are stronger than the main board and small and medium plate. Therefore, the paper makes the gem listed company as an example to study the effect of company research and development investment on growth. Based on the theory of R& D investment and enterprise growth,2000-2013 China’s overall R&D status and the 2009-2012 GEM development are analyzed in comparison. Then, sorting, statistics in 2009,2010 listed on the gem listed companies during 2009-2012 financial data. By building regression model, check the gem listed companies R&D influence on the growth. Each of the five industry test separate, and the results of the regression of each industry analyze separate. Through empirical research, getting the following conclusion:(1) In this paper, the overall corporate R&D investment and enterprise growth do linear regression and nonlinear regression. The regression results show that the fit of the nonlinear regression equation is higher than the fit of the linear regression equation. And nonlinear regression equation to explain the intensity of the real issues is stronger than the linear regression equation. Showing that the nonlinear regression is more accurate to express the relationship between company growth and R&D strength, asset-liability ratio, etc. The current growth and R&D strength are in the inverted "U" shaped relationship.(2) Since industry characteristics and mode of operation is different, factors affecting the company’s growth is not entirely consistent. The influence of R&D investment to Machinery and equipment industry, chemical industry, biological medicine industry, electronic industry growth ability is higher than information services.(3) No matter how industry characteristics and operating characteristics, between company growth ability and quality of employees, the company’s profitability are positive correlation.(4) Information service industry, chemical industry, electronics industry enterprises growth are positively correlated with asset-liability ratio. Machinery and equipment industry, biological medicine industry enterprise’s growth is negative correlation with asset-liability ratio.