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The Effect of R&D Investment on Firms’ Financial Performance: Evidence from the Chinese Listed IT Firms
School of Accounting, Zhejiang Gongshang University, Hangzhou, China
School of Accounting, Zhejiang Gongshang University, Hangzhou, China
- 1 School of Accounting, Zhejiang Gongshang University, Hangzhou, China
- 2 School of Accounting, Zhejiang Gongshang University, Hangzhou, China
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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.
KeywordsR&DROEIT firms
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