An Empirical Research On The Effect Of Corporate R&D Investment On Corporate Performance

Research and development is the power source for enterprises to obtain competitive advantages and get excess profit.Research and development can make the best use of limited resources.It brings new products,new invention and new patents,leads to significant productivity increases,manufacturing cost reduces and market share increases.Practices have proved that the quality of enterprises' R&D activities directly determine the quality of corporate performance.Domestic and foreign scholars had carried out extensive research on the effect of corporate R&D investment affect performance.But most of these studies carried out from the macro level.It has great significance to conduct a research from the micro level.This paper based on Schumpeter's innovation theory and related research home and abroad.Through sorting out research about the effect of corporate R&D investment affect performance,this paper evaluate the contribution,limitations of these studies and pointed out the ideas in this paper.Then using empirical research method,this paper selected ninety firms from three industries in china's stock exchanges,which were the public disclosure of information,then established multiple regression model for empirical tests.The results showed that:R&D investment have positive effect on the return of assets;R&D investment have positive effect on enterprise value,but this effect has hysteretic nature;only R&D expenditure has positive effect on enterprise growth;R&D investment have lagging positive effect on domestic main business income,this phase is over two years;the impact of R&D investment affect corporate performance has cumulative effect;intangible assets can explain the process by which R&D investment affect corporate performance.Finally,in accordance with conclusions of this paper,suggestions are that business managers and stockholders should abandon short-sighted behavior and take the road of sustainable development,increase R&D investment,strengthen R&D management,invest more on intangible assets,breakthrough department boundaries and strengthen cross-border cooperation;while suggestions to the government are that government should improve the accounting policies,lead enterprises to increase R&D investment in intangible assets and give up short-sighted behavior.