Author(s)

Zhaohui Zhu, Feng Huang

School of Accounting, Zhejiang Gongshang University, Hangzhou, China.

Technological innovation by R&D is at the core of business strategy for firms to compete in the competitive market. This paper tests the correlation between firms R&D investment intensity and the one-year lagged performance of Chinese Listed IT firms, and suggests that firms with an intensive investment strategy in R&D will have significantly larger financial performances in the following year.

R&D; ROE; IT firms

Z. Zhu and F. Huang, "The Effect of R&D Investment on Firms’ Financial Performance: Evidence from the Chinese Listed IT Firms," Modern Economy, Vol. 3 No. 8, 2012, pp. 915-919. doi: 10.4236/me.2012.38114.