R&D SPENDING VALUE EFFECT RESEARCH OF CHINA’S LISTED MANUFACTURING COMPANIES

Wanhao Zhang, Xiding Chen

ABSTRACT: Through studying the impact of R&D expenditure on the market value of firms according to the data of manufacturing-listed companies in Shanghai and Shenzhen A stock market from 2001 to 2014, we find that the R&D expenditure of manufacturing-listed companies shows a positive correlation with the market value. Meanwhile, R&D expenditure can generate better value effect in smaller firms. The value effect from R&D expenditure in private enterprises is greater than that in state-owned enterprises.

Keywords: Manufacturing industry, R&D expenditure, Market value.