Study of the Role of Research and Development Investment in Corporate Value

Abstract

Taking 243 pharmaceutical enterprises listed on Shenzhen Stock Exchange and Shanghai Stock Exchange as the research objects, this paper gathers the data indicated in the annual reports of these enterprises from 2013 to 2018, and analyzes the contribution of research and development investment to develop the company’s market value, and It further studies whether there are time lag and superposition effects in research and development investment. By studying the role of research and development investment in corporate value, it is beneficial for pharmaceutical manufacturing companies to carry out scientific research activities efficiently and reasonably. This paper finds that, first of all, research and development investment can add current corporate value. In the second place, the active role of research and development investment in corporate value is long-term effective. Third, accumulated research and development investment will have a long-term effective positive role in corporate value.