Nonlinear Relationship Between R&D Investment and Financial Performance of Listed Manufacturing Companies Against the Background of the COVID-19 Pandemic

Authors

DOI:

https://doi.org/10.5755/j01.ee.37.4.39292

Keywords:

R&D Investment, Financial Performance, Inverted “U”-shaped Relationship

Abstract

This study conducts an empirical analysis on the influence of lagged R&D investment on the financial performance of manufacturing companies listed on mainland China exchanges (A-shares) from 2015 to 2023. It investigates the dynamic relationship between R&D investment and financial performance during the COVID-19 pandemic. First, it examines the relationship between R&D investment and financial performance in the manufacturing companies of different ownership structures. It concludes that a lag in R&D investment will significantly affect financial performance and their relationship follows an inverted “U”-shape pattern. Second, it found that the COVID-19 pandemic disrupted this inverted “U”-shaped relationship. Third, it discovered that in non-state-owned manufacturing companies, the inverted “U”-shaped relationship between R&D investment and financial performance is significant, while this relationship is not significant in state-owned manufacturing companies.

Author Biographies

  • Yuan Chen, Shenyang Ligong University

    Yuan Chen is an Associate Professor and Master's Supervisor at Shenyang Ligong University. She has led and completed multiple provincial-level scientific research and teaching reform projects. Her research interests include financial management and internal control.

  • Haiyang Zheng, Shenyang Ligong University

    Haiyang Zheng is a Master's student at Shenyang Ligong University. His research focuses on financial management.

  • Mengting Wu, Shenyang Ligong University

    Mengting Wu is a Master's student at Shenyang Ligong University. Her research focuses on financial management.

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Published

2026-10-30

Issue

Vol. 37 No. 4 (2026)

Section

Journal General Track