R&D Investment,private Equity And Business Performance

Enterprise R&D investment is an important factor to enhance enterprise value,which plays an important role in enterprise business performance and long-term sustainable development.Especially for high-tech enterprises,the intensity of R&D investment will affect the enterprise’s product innovation ability and profitability.Therefore,it is necessary to pay attention to the impact of enterprise R&D investment on enterprise business performance.As a part of the multi-level direct financing system,the main function of private equity investment is to provide financing and value-added services for venture capital enterprises,high-tech enterprises and small and medium-sized enterprises,so that high-tech enterprises can avoid the break of the financing difficult financial chain,continue to grow and enhance the liquidity of economic resources.In recent years,the rapid development of private equity investment has attracted more and more scholars’ attention,and its role is very important for small and medium-sized enterprises in the high-tech industry.However,few authors pay attention to the role of private equity between enterprise R&D investment and enterprise operating performance.In view of this,this paper builds a benchmark measurement model of the impact of enterprise R&D investment on enterprise business performance based on the data of listed companies on the GEM of the biological and information technology industry from 2017 to 2021,and studies the impact of enterprise R&D investment on enterprise business performance and the regulatory role of private equity in it.The fixed effect model and instrumental variable method in the empirical research method are used for regression analysis to draw the following conclusions:(1)R&D investment is an important factor affecting the business performance of enterprises.The increase of R&D investment can significantly improve the business performance of enterprises.(2)The impact of R&D investment on business performance will be regulated by private equity.On the one hand,under the same R&D investment intensity,companies with private equity background have better business performance;On the other hand,in the same downward intensity of R&D investment,the greater the proportion of private equity,the better the operating performance of companies.(3)Private equity with state-owned background has a positive moderating effect on the impact of R&D investment on business performance.On the one hand,under the same R&D investment intensity,private equity with state-owned background has better business performance;On the other hand,in the same downward intensity of R&D investment,the greater the proportion of private equity in the state-owned background,the better the operating performance of companies.In this regard,this paper proposes that listed enterprises in the biological and information technology industry should increase R&D investment,appropriately increase the share of private equity,and appropriately increase private equity investment with state-owned background in the equity structure,which can help enterprises obtain better business performance and other policy recommendations.