Study On The Effects Of R&D Investment On Performance Of Listed Companies Of The Electronic Information Industry In China

With the rapid development of electronic information technology, electronics and information technology has become a new economic growth point. Electronic information industry has become a new force promoting the world economic. As a high-tech industry, the development of electronic information industry is based on R&D activities. R&D activities promote the enterprises more than before. Compared with the foreign developed countries, Chinese electronic information industry started later. Meanwhile, the research of that how the R&D inputs impact business performance has just begun. In this background and situation, the impact of the R&D inputs on business performance was studied in this paper.In order to study the relationship between R&D input and business performance of China, the companies of electronic information industry listed in Shanghai and Shenzhen A-share from 2012 to 2014 was chosen as sample. The factor analysis was used to obtain three indicators of corporate profitability, capacity development and operational capacity. With an integrated performance indicators based on these three explanatory variables, descriptive statistical analysis and regression analysis was done. Based on the correct the Cobb- Douglas production function, a multiple linear regression analysis was done to analyze the correlation between R&D input and business performance and the delayed and cumulative effect of R&D input. The results confirmed that in the electronic information industry the correlation between R&D input and business performance exist, and R&D input has a delayed and cumulative effect on business performance.Finally, according to the results of analysis, some advices were given to promote the electronic information industry from both government and enterprises,in order to increase R&D performance and enhance the core competitiveness of enterprises.