TITLE:
The Threshold Effect of R & D Intensity on Enterprise Performance—Evidence from the GEM Listed Company
AUTHORS:
Yuequn Wei, Guiping Bao
KEYWORDS:
R & D Investment Intensity, Sustainability, Firm Performance, Threshold Effect
JOURNAL NAME:
Open Access Library Journal,
Vol.5 No.5,
May
24,
2018
ABSTRACT:
This paper mainly adopts the panel data of listed company in GEM from 2012 to 2016, with the threshold panel model, Deeply studying the influence of R & D investment intensity on enterprise performance, and discovering that R&D intensity has a double threshold effect on enterprise performance. When the sustainable ability of research and development activities is lower than the first threshold value, R & D intensity has a significant negative impact on firm performance; when the sustainable capacity is between the first threshold value and the second threshold value, the intensity of R & D investment and enterprise financial performance was negatively correlated, and positively correlated with production performance; when the sustainable capacity of R & D activity exceeded second threshold value, R & D intensity has a significant positive impact on enterprise performance. Therefore, to improve the sustainability of R & D activities is an important way for enterprises to improve their performance.