China’s Gem Board Guoted Companies:R&D Investments And Growth Potential Affections

The GEM board opened on 2009 in China, There’s 355 companies landed on GEM board untile Dec 31th 2012 successfully which were focused by people related. Will the growth of listed companies on GEM board be influenced by the research and development input? In consideration of the features of the listed companies on GEM board, this article will analysis the influence to the growth of the companies.One of the main tasks of financial activities of enterprises is the scientific and rational allocation of human,financial, material resources and technology combination, the technology capital into real productive forces, the enterprise and therefore, is of great significance to study the relationship between the growth of R&D investment and enterprise. This article from the current situation in China’s gem, reviews the literature related to R&D investment and growth, the human capital theory, technological innovation theory as the theoretical basis, the related concepts of R&D investment and growth were defined, support the use of the full theory, analysis the relationship between the two, and on the basis of the human capital and material capital into two levels selected undergraduate and above personnel ratio, technology and R&D personnel ratio and intensity of R&D, R&D costs four indexes to evaluate the R&D investment, from the six levels of selected twelve indicators to quantify the growth of enterprises, establishing regression models. This article selects the GEM listed company as the research object, the index data during 2010-2012 as the research sample. The 354 GEM Listing Corporation samples using principal component analysis method to quantify its growth, and the ratio of undergraduate personnel, technology and R&D personnel ratio,R&D strength,R&D costs of descriptive statistical analysis, using a linear regression method to verify the correlation of each index and the growth of investment in R&D.The empirical results show that:the ratio of technical personnel and R&D intensity has significant effects on corporate growth, positive correlation, and the undergraduate and above personnel ratio and R&D expenses are not significant to the company growth effect. According to the empirical results, put forward the rational allocation of corporate R&D resources, pay more attention to the introduction of R&D personnel, steady investment research funding, policy suggestions cannot blind investment, has a positive effect on China’s growth enterprise market of listing corporation to obtain long-term competition advantage in the market.