Effect of R&D Investment on Performance of Chinese Listed Companies——Take Manufacturing and IT Industry as an Example
Chunmei Wang
Abstract
Chunmei Wang
Abstract
RD activity is the main origin of innovation,and innovation is just the key factor to form the enterprise's core competition ability.So the influence of RD investment on an enterprise's performance has always been the focus among scholars.In this paper,the data of 99 listed companies of manufacturing and IT industry between 2005 and 2008 are used to analyze the effect of RD investment on their performance,and it finds out that there is a negative relationship between RD investment and enterprise performance,and RD investment does have the significantly delayed influence on enterprise performance.Finally,it suggests that listed companies increase their RD investment and improve scientifically the decision making.
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RD activity is the main origin of innovation,and innovation is just the key factor to form the enterprise's core competition ability.So the influence of RD investment on an enterprise's performance has always been the focus among scholars.In this paper,the data of 99 listed companies of manufacturing and IT industry between 2005 and 2008 are used to analyze the effect of RD investment on their performance,and it finds out that there is a negative relationship between RD investment and enterprise performance,and RD investment does have the significantly delayed influence on enterprise performance.Finally,it suggests that listed companies increase their RD investment and improve scientifically the decision making.
Key concepts: Investment (military), Competition (biology), Business, Industrial organization, Manufacturing, Key (lock), Core (optical fiber), Marketing