Government Subsidy,R&D Investment And Profitability

At present,the integration of regional economy and the world economic globalization make the world economy closely linked.Since China joined the Wor ld Trade Organization(WTO)in 2001,it has actively used the trend of global economic integration to seek benefits.Innovation plays an important role in improving the profitability of the corporations,the Chinese government encourages and support independent innovation of enterprises,government subsidy is one of the main ways to support.The IT industry is in the leading position in the high-tech industry,the industry is full of driving force and atmosphere of innovation and get more subsidies than other industries.Whether the enterprise will increase the R&D investment after receiving the government subsidy,the two are the influence of the information technology listed company's profit ability,the discussion of the above question is the research content of this article.Firstly,this paper describes the research background and signif icance,reviews the related theory and literature and made a literature review,the theory on the basis of the analysis puts forward three kinds of hypotheses that are government subsidy has a positive impact on IT industry profitability of listed companies,R&D investment has a positive impact on the profitability,government subsidy has a moderating effect on the relationship between profitability and investment;secondly,according to the above assumptions to establish empir ical models,using the panel date of IT listed companies in China from 2011 to 2015 to regress,research results show that: the current government subsidy has a signif icant positive impact on the profitability,the lag phase of government subsidy also has the effect but not significant;the current corporate R&D investment has a positive impact on profitability,the lag phase of the corporate R&D investment has a significant positive effect on profitability;the lag phase of government subsidy has a positive moderating effect on the relationship between the lag phase of R&D investment and profitability,also has the same effect on the relationship between the current R&D investment and profitability,the current government subsidy doesn't have a positive moderating effect on the relationship between the profitability and current R&D investment.;finally,choose the Sunwin Intelligent Company for case analysis,according to the empirical research conclusion and case analysis results,this paper puts forward some reference to government subsidy,corporate R&D investment and IT industry.