Research On The Effect Of R&D Investment In BYD Company

With the influence of air pollution,rising oil prices,the western developed countries' automobile enterprises began to develop the new energy vehicles from zero,and the development of new energy vehicles,to our country's car enterprises provides a corner overtaking opportunities,because they are all in the same starting line.Oil energy supply is becoming more and more serious,and the environmental quality of our country is getting worse day by day.The future of new energy vehicles will become a trend.Our executives also recognize that the future of the automotive industry should focus on the development of new energy vehicles,and the introduction of relevant incentive policies,resulting in China's automobile enterprises to increase investment in technology research,in order to improve the competitiveness of their products.In this paper,the theoretical analysis and case studies are combined,using the event study method and financial index to analysis method,to study the BYD company by strengthening R & D investment,mastered the core technology,greatly enhance the company's performance.Based on reading a lot of literatures,first reviewed and summarized the investment effect on the performance of research and development of automobile enterprises R & D investment related literature and theoretical basis,summarizes China's new energy vehicles subsidy policy,analyzes the mechanism of the influence of corporate performance of R & D investment,respectively,using the method of event study,financial index and market share the rate to verify the impact on the company's short-term market performance and long-term financial performance and the status of industry R & D investment company BYD.Analysis of the data showed that the days of the event,which will lead to excess returns;from 2012 after the release of new energy vehicles,the company's profitability,solvency and operational efficiency are relatively large increase;market sales growth,indicating that the company has good growth.This study shows that R & D investment has a positive impact on the performance of BYD company.