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Enterprise's R&D and Innovation Management

The Heterogeneous Effects of R&D Investment and Sales Ex⁃ penses on the Performance of Biopharmaceutical Listed  Companies 

Shao Peng1 , Zhang Yawen2 , Li Genqiang3

(1.School of Management, Xi'an Polytechnic University, Xi'an 710048, China; 2.School of Science, Xi'an Poly⁃ technic University, Xi'an 710048, China; 3.School of Health Management, Xinxiang Medical University, Xinxiang 453003, China)

Abstract: R&D and marketing are two important business activities that affect the perfor⁃ mance of biomedical enterprises. How R&D investment and sales expenses affect the perfor⁃ mance of biomedical enterprises remains to be explored. Based on the public data of China's Ashare biopharmaceutical listed companies from 2018 to 2022, A two-way fixed-effect model was  established to analyze the heterogeneity of R&D investment intensity and sales expense ratio on  the performance of biopharmaceutical companies in the current and late periods. The results  show that: ①Both R&D investment intensity and sales expense ratio have significant effects on  the financial performance of enterprises in the current period. Among them, the impact of R&D  investment intensity on financial performance in the current period is U-shaped, and the nega⁃ tive impact of sales expense ratio on financial performance in the current period is only linear.② The positive impact of R&D investment intensity and sales expense ratio on enterprise perfor⁃ mance is lagging. When R&D investment intensity is lagged by 2 periods, it has a significant  positive correlation with financial performance and market performance; With a lag of 3 periods, R&D investment intensity has a significant positive correlation with market performance, and  sales expense ratio has a significant positive correlation with financial performance and market  performance.③This study tested by replacing the explained variable and lagging the control vari⁃ able for one period, and the result was still robust.④The samples are grouped according to R&D  investment intensity and sales expense input intensity, and the hysteresis is considered. The re⁃ sults show that the sales expense ratio has a significant negative impact on the market perfor⁃ mance of enterprises when the R&D enterprise lags for one period, and has a significant positive  impact on the financial performance and market performance of enterprises when the R&D enter⁃ prise lags for three periods. The R&D investment intensity has a significant positive impact on  the financial performance and market performance of the enterprises with a lag of 2 periods, and  the R&D investment intensity has a significant positive impact on the market performance of the  enterprises with a lag of 3 periods.⑤The samples are grouped according to the nature of property  rights and the hysteresis is considered. The results show that: when non-state-owned enterprises  lag by 2 periods, the intensity of R&D investment has a significant impact on financial perfor⁃ mance and market performance.⑥According to the size of the firm, the samples are grouped and  the hysteresis is considered. The results show that R&D investment intensity has a significant  positive impact on the financial performance and market performance of large enterprises when  they lag by 2 periods. When small-scale enterprises lag by 2 periods, R&D investment intensity  has a positive impact on their financial performance; when they lag by 3 periods, R&D invest⁃ ment intensity has a positive impact on their market performance; sales expense ratio has a sig⁃ nificant positive impact on both financial performance and market performance. 

Key words: biopharmaceutical; listed companies; enterprise performance; R&D investment; sales expenses