An Empirical Study On R&D Investment Impact On Corporate Financial Performance-to Small And Medium Enterprises As An Example

Nowadays,Small and Medium Enterprises(SMEs)are the cradle of science and technology enterprises,and bring vitality to the diversification of the national economy.The technological innovation and the effective development of SMEs are not only the social responsibility,but also the driving force of SMEs to continue to expand,enhance core competitiveness and corporate value.With the advent of technology advances,the era of Big Data.The competition among SMEs is more and more intense.Many SMEs have realized that the constant innovation is the key to improve the core competitiveness of enterprises,while R&D is the driving force and source of innovation.However,in theory,R&D investment can enhance the competitiveness of enterprises,improve production efficiency and management capacity,but in reality we are lack of scientific and large samples' empirical research on how R&D investment influences SMEs' performance.Therefore,this article will explore this issue.The paper select 577 listed enterprises from Shenzhen SME board as samples,and use annual data from 2012-2014 consecutive years,and select the relative amount of R&D investment,as explanatory variables,enterprise performance as explained variables.From two dimensions of enterprise financial performance and efficiency to comprehensive evaluate enterprise performance.Processing the data of 13 financial perfonnance indicators with the method of Principal Component Analysis,we can get indicators which can express enterprise's financial performance.With the method of Data Envelopment Analysis,we can calculate enterprise's efficiency.Introduce enterprise scale as a control variable,and validate the relationship between the R&D investment and enterprise performance with the multiple linear regression models,and test the hysteresis effect between the two.Finally,according to the research conclusions,this paper gives some suggestions.From the corporate perspective,SMEs should strengthen the development of awareness,increase investment in research,improve their level of R&D management and focus on the management of input-output efficiency.In addition,SMEs need to strengthen their data management in order to have a better self-analysis and enterprise performance evaluation.From the government's perspective,this paper recommends that the government increase guidance and policy support for the intellectual property rights create healthy,favorable environment for innovation.Governments should help to strengthen cooperation among and SMEs,research institutions and universities,and use tax incentives,financial grants and other means to ease SMEs financial pressure to encourage them have an effective long-term R&D investment.