Proceedings of the 2022 2nd International Conference on Economic Development and Business Culture (ICEDBC 2022)

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Impact of R&D Investment on Profitability of Firms in Biomedical Industry

Authors
Chengjing Dong1, *
1Shenzhen College of International Education, Shenzhen, China
*Corresponding author. Email: s20452.dong@stu.scie.com.cn
Corresponding Author
Chengjing Dong
Available Online 31 December 2022.
DOI
10.2991/978-94-6463-036-7_103How to use a DOI?
Keywords
Investments in Research and Development; Biomedical industry; Profitability; Normalization of Covid-19 Epidemic
Abstract

The modern technology is developing at a high speed in recent years, therefore, the research and development investment has become an essential factor for firms to attract consumers, gain more market power and increase profits. However, the large amount of investment expenditure may have negative impacts to firms’ current profitability, additionally, firms will even face the risks of investment failure. Due to this, this essay would analyse and discuss the relationship between firms’ research and development investments and firms’ profitability, using data from Chinese A-share-listed firms in the biomedical industry through the regression model, with a time period of 2016–2020 to explore both short-term and long-term effects. Robustness tests are applied to ensure the stability of the results. Moreover, the essay will explore the special patterns of relationship under the normalization of Covid-19 epidemic by comparing regression results in different time periods, therefore provides better suggestions to firms’ further developments.

Copyright
© 2022 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2022 2nd International Conference on Economic Development and Business Culture (ICEDBC 2022)
Series
Advances in Economics, Business and Management Research
Publication Date
31 December 2022
ISBN
10.2991/978-94-6463-036-7_103
ISSN
2352-5428
DOI
10.2991/978-94-6463-036-7_103How to use a DOI?
Copyright
© 2022 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Chengjing Dong
PY  - 2022
DA  - 2022/12/31
TI  - Impact of R&D Investment on Profitability of Firms in Biomedical Industry
BT  - Proceedings of the 2022 2nd International Conference on Economic Development and Business Culture (ICEDBC 2022)
PB  - Atlantis Press
SP  - 697
EP  - 706
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-036-7_103
DO  - 10.2991/978-94-6463-036-7_103
ID  - Dong2022
ER  -