An Empirical Investigation on the Relationship Between Investment Tax Credit of R&D and Corporate Performance

• Main Authors: Yang,Kai-shiang, 楊開祥
• Other Authors: 李書行
• Format: Others
• Language: zh-TW
• Published: 2002
• Online Access: http://ndltd.ncl.edu.tw/handle/82372768466000212981

碩士 === 國立臺灣大學 === 會計學研究所 === 90 === Abstract This study focuses on the relationship between investment tax credit of R&D and corporate performance, and views R&D tax credit ratio and employee income return ratio as variables to measure corporate investments on R&D and productivity. Empirical research examines 115 companies listed on TSE by using OLS regression analysis. The empirical results are as follow： 1、Relationship between R&D activity and corporate performance Gross margin ratio is significant positive associated with R&D activity, and it is more significant related to R&D tax credit ratio than to R&D intensity. High R&D tax credit ratio results in high gross margin ratio. Moreover the significant positive association will last for two years. 2、Relationship between productivity and corporate performance Gross margin ratio is significant positive associated with productivity. In low productivity group, gross margin ratio is significant positive associated with productivity, but this association does not appear in high productivity group. The conclusion in this section is that productivity is a key factor to influence gross margin ratio when productivity is low. But when productivity exceeds a certain level, other factors will get more important. 3、Interaction In high R&D and high productivity group, gross margin ratio is significant positive associated with R&D activity. But in low R&D and low productivity group, gross margin ratio is significant positive associated with productivity. Productivity is a key to influence gross margin ratio when productivity is low, but when productivity exceeds a certain level, R&D activity will get more important. 4、Gross Margin Ratio When gross margin rate is low, gross margin ratio is positive associated with productivity. But when gross margin rate gets higher, gross margin ratio is significant positive associated with R&D activity. The conclusion of this section is that when corporate performance is weak, improvement can be achieved by raising productivity. But after exceeding a certain level, R&D activity will be the key factor.