An Empirical Study On R&D Expenses And Business Performance

Leading the whole society to increase the investment in R&D is an important basis for implementing the innovation-driven development strategy and the key factor for China to enter the ranks of innovative countries in 2020.Innovation is the source of enterprise development.Innovation is the driving force source of enterprise development.By increasing the investment of R&D expenditure,the enterprise maintains the advantage of science and technology innovation and competition,and the users of accounting information pay more attention to the understanding of the accounting information related to the R&D activities of the enterprise.Compared with the total R&D expenditure expensed,the accounting treatment of capitalization of R&D expenditure under the new standard of intangible assets has theoretically improved the profits of enterprises in the current period.However,the delayed effects of different accounting treatment methods of R&D expenditure on the business performance of enterprises need to be verified.Based on enterprise capability theory,signal transfer theory,principal-agent theory and lag theory,this paper puts forward research hypotheses.The data of capitalization and expense of R&D expenditure of gem listed companies from 2014 to 2017 are collected manually as the object of study.This study takes the rate of return on net assets as the explained variable,the intensity of capitalized expenditure and the intensity of expensed expenditure as the explanatory variable.then the multiple regression model is established to analyze the delayed impact of different accounting treatment methods of R&D expenditure on enterprise performance.After this empirical study,the research results are listed below:(1)Among 334 sample enterprises,214,213,206 and 204 R&D expenditures were fully expended in 2014-2017,and the capitalized R&D expenditure of these sample enterprises was zero.This shows that some enterprises' R&D expenditures have not been capitalized.(2)There is lag in the effect of R&D expenditure capitalization intensity on business performance,and there is a significant positive effect in the third year.(3)There is lag in the impact of R&D expenditure expense intensity on business performance.The lag period is significantly negative in two years,showing a significant positive effect in the third year.(4)Ownership concentration plays arole in weakening the delayed impact of different accounting treatment methods on R&D expenditure on the business performance of an enterprise.The corresponding suggestions are put forward in this paper.Firstly,improve the information disclosure system of the listed company;secondly perfect accounting standards implementation mechanism;thirdly,strengthen the management and supervision of the internal research and development of the enterprise;finally,maintain the right degree of equity concentration and distribute the equity properly.