Empirical study on the relationship between R&D expenditure and financial performance of healthcare industry

Abstract

In this paper, the principal component analysis method is used to extract multiple groups of indicators representing the company's operating capacity, profitability and growth into several comprehensive indicators, so as to reflect the short-term financial performance of the enterprise, and Tobin Q is used to reflect the long-term financial performance of the enterprise. At the same time, the paper uses SPSS software to conduct a regression analysis of the R&D expenditure level and corporate financial performance of 107 listed companies in China's healthcare industry from 2016 to 2018, and it is concluded that the higher the level of R&D expenditure, the lower the short-term financial performance and the higher the long-term financial performance.