The Threshold Effect of R & D Intensity on Enterprise Performance—Evidence from the GEM Listed Company ()
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.
Share and Cite:
Wei, Y. and Bao, G. (2018) The Threshold Effect of R & D Intensity on Enterprise Performance—Evidence from the GEM Listed Company.
Open Access Library Journal,
5, 1-12. doi:
10.4236/oalib.1104534.
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