R&D investment, government subsidies and corporate value of strategic emerging industries

Science Research Management ›› 2017, Vol. 38 ›› Issue (9): 30-34.

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R&D investment, government subsidies and corporate value of strategic emerging industries

Wu Xianyun ^1,2, Chen Yan², Li Xiulan¹, Li Zuokui²

1. School of Management, Dalian Polytechnic University, Dalian 116034, Liaoning, China；
2. School of Accounting, Dongbei University of Finance and Economics/China Internal Control Research Center, Dalian 116025, Liaoning, China

Received:2015-08-04 Revised:2016-02-29 Online:2017-09-20 Published:2017-09-15

Abstract

Abstract: Theoretical studies have show that R&D investment has value relevance, and government subsidies has moderating effect on the relationship between R&D investment and corporate value. Based on data of 278 strategic emerging companies from 2010 to 2014, the paper investigates how subsidies affect R&D creating company value. Results show that R&D investment significantly reduces current financial performance and market value, while significantly improves financial performance lagged two periods and the enterprise value lagged three periods. The relationship between the lagged government subsidies and company value is significantly negative, while lagged government subsidies have additional effect of corporate financial performance .

Key words: R&D investment, government subsidies, corporate value, moderating effect, strategic emerging industries

Wu Xianyun, Chen Yan, Li Xiulan, Li Zuokui. R&D investment, government subsidies and corporate value of strategic emerging industries[J]. Science Research Management, 2017, 38(9): 30-34.

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R&D investment, government subsidies and corporate value of strategic emerging industries

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