Abstract
This paper studies whether the investment intensity of R&D expenses of listed companies can improve the profitability of enterprises. The data indicators of listed companies from 2015 to 2017 are obtained by using CSMAR database. R&D investment is divided into two indicators: relative number index and absolute number index, and regression analysis is carried out by establishing the econometric analysis model of profitability and absolute number index and relative number index of R&D investment. It is found that the intensity of R&D investment has a positive effect on the profitability of enterprises. Therefore, enterprises can improve their profitability through technological innovation and increasing R&D investment.
Highlights
With the continuous advancement of China's modernization process, the role of scientific and technological innovation has become increasingly significant
Weygand(1955) analyzed the relationship between R&D investment and enterprise performance based on the data of about 400 enterprises, and the results showed that there was a positive correlation between them[1]
Wang Yuchun and Guo Yuanyan (2008) take the R&D information of A-share listed companies in manufacturing and information technology industries as sample data, and the results show that R&D investment has a positive effect on the profitability and growth ability of enterprises, and this effect is lagging behind and cumulative[3]
Summary
With the continuous advancement of China's modernization process, the role of scientific and technological innovation has become increasingly significant. The research on the impact of technological innovation on enterprise performance started earlier in foreign countries, and many scholars took the R&D investment of enterprises as an explanatory variable in the research process. Weygand(1955) analyzed the relationship between R&D investment and enterprise performance based on the data of about 400 enterprises, and the results showed that there was a positive correlation between them[1]. In China, the research on the impact of technological innovation on enterprise performance started relatively late. Enterprises did not disclose the R&D investment and expenditure of enterprises, so there was no basic data to support the research. Zhang Jijian(2009) takes the high-tech enterprises that fully disclosed R&D expenditure information from 2003 to 2007 as the research sample, and takes the operating income as the measure index of enterprise performance[4]. Using two different models to analyze whether the enterprise's performance and profitability will be improved by enhancing scientific and technological innovation
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