Study On Threshold Effects Of R?D Intensity On Manufacturing Corporate Value From The View Of Life Cycle Perspective

Corporate life cycle and R&D investment are significant for firms.Both theory and practice show that life cycle plays a guiding role in R&D investment decision,and the relationship between R&D investment intensity and firm value is also influenced by corporate life cycle.Based on the theory of corporate life cycle,this paper presented a new perspective of researching R&D investment and corporate value and verified the feasibility of the sustainable development of enterprises through R&D investment.On the other hand,we brought some inspirations for the development of enterprises.Using threshold panel data model with listed manufacturing enterprises in China,this paper analyzed the non-linear effects of R&D intensity on firm value.Our results suggest that R&D expenditures can increase firm value,and the relationship between R&D and firm value varies in different life cycle stages.Further study shows that R&D investments in growth stage and decline stage exert single threshold effect on their firm value,while triple threshold effect is found in mature stage.First,our research gives an important inspiration of enterprise R&D management;secondly,it is helpful to reveal the significant strategic turning point,thus promoting corporate to break though the limit by R&D investment and improving the strategic management of corporate life cycle.