OLS Model Based Research on Influential Factors of Financial Performance for Chinese Technology Companies

DOI

10.2991/assehr.k.211209.402How to use a DOI?

Keywords

OLS Model; Influential Factors; Financial Performance; Chinese Technology Company

Abstract

Based on 459 Chinese listed technology companies from the RESSET Finance Database, this paper explores the influential factors of the financial performance of Chinese technology companies. With the application of statistics software, the data are processed through Person correlation and OLS regression analysis. The research results demonstrate that financial leverage, operating leverage, and firm size are correlated with both long-term and short-term financial performance. Growth opportunity is only associated with short-term financial performance (ROA), and government ownership has a significant correlation with long-term financial performance (R&D). Contrary to the results of previous studies, a company’s liquidity is not correlated with financial performance. The study findings highlight the importance of company-specific characteristics to Chinese technology companies and conclude the following implications. First, companies should be vigilant on the use of debt to form a healthier financing structure. Second, for large companies, the importance of R&D investment should be stressed to maintain its competitiveness. Last, policymakers should better refine the subsidy policies to incentivize R&D investment in the private sector.

Copyright

© 2021 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article under the CC BY-NC license.

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TY  - CONF
AU  - Fangfei Jiang
AU  - Zhao Xi
PY  - 2021
DA  - 2021/12/15
TI  - OLS Model Based Research on Influential Factors of Financial Performance for Chinese Technology Companies
BT  - Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021)
PB  - Atlantis Press
SP  - 2470
EP  - 2479
SN  - 2352-5428
UR  - https://doi.org/10.2991/assehr.k.211209.402
DO  - 10.2991/assehr.k.211209.402
ID  - Jiang2021
ER  -