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has been cited by the following article:

• TITLE: The Effect of R&D Investment on Firms’ Financial Performance: Evidence from the Chinese Listed IT Firms

  AUTHORS: Zhaohui Zhu, Feng Huang

  KEYWORDS: R&D; ROE; IT firms

  JOURNAL NAME: Modern Economy, Vol.3 No.8, December 31, 2012

  ABSTRACT: 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.