R&D Investment, Internal Control and Enterprise Performance—An Empirical Study Based on the Listed Companies in China of the Core Industry of the Digital Economy

Xinyue Wu and Shaolun Zeng ()
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Xinyue Wu: School of Management, Sichuan University of Science & Engineering, Zigong 643099, China
Shaolun Zeng: School of Economics and Finance, Guizhou University of Commerce, Guiyang 550014, China

Sustainability, 2022, vol. 14, issue 24, 1-13

Abstract: Based on the financial data of listed companies in the core industries of the digital economy from 2010 to 2021, the moderating effect was used to analyze R&D investment, internal control, and enterprise performance. The empirical results show that for listed companies in the core industries of the digital economy, increasing R&D investment can help companies improve their performance. In addition, internal control positively impacts enterprise performance. Internal control acts as a moderating variable, negatively moderating R&D investment and enterprise performance. At low levels of internal control, an increase in R&D investment is associated with a more significant increase in firm performance than at high levels of internal control. Increasing investment in R&D is associated with a slower performance increase at high internal control levels. For companies in the core industries of the digital economy, there is no significant inverted ‘U’-shaped relationship between R&D investment and enterprise performance.

Keywords: R&D investment; internal control; enterprise performance; moderating effect; core industries of the digital economy (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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