Author(s)

Shan Duan, Wangxiongjie Zheng

Corresponding Author

Wangxiongjie Zheng

Abstract

This paper takes manufacturing companies in Zhejiang region from 2016 to 2018 as sample companies, discusses the relationship between R&D investment and enterprise performance, and introduces the effectiveness of internal control as a regulating variable to study the relationship between internal regulation and R&D investment and enterprise performance. Empirical research finds that: R&D investment can indeed improve the performance of enterprises, but it has a certain lag; However, effective internal control can adjust the relationship between the two, and has played a role of "providing timely help" or even "icing on the cake" in the current investment period, that is to say, effective internal control can reduce the side effect of r&d investment on current enterprise performance, but can enhance the positive effect of subsequent periods on enterprise performance.

Keywords

Manufacturing enterprises, Investment in research and development, Enterprise performance, Effectiveness of internal control, Regulatory effect, Correlation analysis