R&D Investment Enhance the Financial Performance of Company Driven by Big Data Computing and Analysis

Abstract

The application of computer technology, especially the emergence of some statistical software and graphic presentation technology, has enabled many areas of research that require a large amount of data analysis. This paper discusses the relationship between R&D investment and corporate financial performance, and further studies the effect of environmental regulations on this relationship through these technologies. The unbalanced panel data of listed companies from 2007 to 2016 were used as a sample, and then corresponding regression modelswere established through logical reasoning. Empirical analysis has found that there is an inverted U-shaped relationship between R&D investment and company financial performance, and there is a U-shaped relationship between the intensity of environmental regulations and companies’ investment in R&D. Another finding is that the inverted U-shaped relationship between companies’ R&D investment and financial performance is moderated by environmental regulations in such a way that greater environmental regulations is associated with a lower point of maximum efficiency in the inverted U-shaped curve. This indicates that the strengthening of environmental regulations will affect a company’s resource allocation, which will lead to a reduced investment in production, R&D and so on, thus reducing the peak value of financial performance.