Research On The Impact Of R&D Investment On The Financial Risk Of FS Company

Since December 2019,the sudden new crown pneumonia virus has swept the world and mutated strains have appeared frequently,posing a serious threat to human life and health.As one of the means to fight against the new corona-virus,vaccines have also received unprecedented attention.Major bio-pharmacy companies are competing to invest in the development of a variety of vaccines,and the bio-pharmacy industry has also received extraordinary attention.As a bio-pharmacycompany,R&D investment often plays a key role in the company’s development,and usually also significantly affects the company’s financial risks.As a pioneer of innovation,R&D investment is essential,but it may be accompanied by changes in corporate financial risks.As a giant of domestic vaccine companies,FS also faces opportunities and challenges in the development of the industry.This article uses FS Bio-pharmacy Company as the research object,combined with FS Company’s 2016 to 2020 annual report data,through model construction and case analysis,using quantitative and qualitative methods to analyze the relative impact of R&D investment and financial risks.From the perspective of R&D investment structure analysis,this paper analyzes the impact of R&D investment on cash flow,and then analyzes the impact of R&D investment on various factors of Z-Core model,and the results showed that R&D investment had a significant negative impact on the company’s short-term solvency and profitability.In view of the structure,scale and matching problems of FS’s R&D investment,this paper puts forward three suggestions,including optimizing the structure of R&D investment,controlling the scale of R&D expenditure,and reasonably matching the source of funds.It is hoped that through this research,it can provide some reference for the optimization of R&D investment of bio-pharmacy company companies and the reduction of financial risks.