Research On The Correlation Between The R&D Investment Intensity And Firm Performance From Chinese Listed Companies

In this paper,we use 2711 listed companies of the Shanghai and Shenzhen A shares from 2007 to 2015 as a sample of data.We employ three methods(i.e.,time-series method,event-year method and the fixed sample group method)to investigate the R & D Investment Intensity in the whole industry,SME board,GEM board and their sub-sectors and discuss the non-ergodic of timing characteristics for the event-year method.Then,we through the threshold effect model for empirical testing,study the existence of the threshold effect between the R&D investment and business performance and the corresponding threshold interval.Finally,we conduct empirical tests on different R&D investment strength types of enterprises separately,to exam whether the impact of R&D investment intensity on enterprise performance is nonergodic.The main findings of empirical research include: i)The R&D investment intensity of Chinese listed companies is non-ergodic in general,and there is a narrow trend between R&D investment intensity differences.With respect to the sub-sectors,the R&D investment intensity is also non-ergodic in SME board,GEM board and manufacturing,construction,information services industry.ii)There is a threshold effect on the impact of R&D investment intensity of listed companies on the performance of enterprises.Companies listed on the SME and GEM board have a higher threshold.iii)Overall,R&D investment intensity is positively related to firm performance.At the same time,the relevance of R&D investment intensity and corporate performance maintains non-ergodic as the R&D investment intensity does.iv)Listed companies,especially high-tech enterprises should pay attention to R&D investment,to maintain the appropriate R&D investment policy,which can bring long-term benefits for the enterprise.