Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021)

OLS Model Based Research on Influential Factors of Financial Performance for Chinese Technology Companies

Authors
Fangfei Jiang1, *, Zhao Xi2
1Carey Business School, Johns Hopkins University, Baltimore, 21218, USA
2School of Economics and Management, Hefei University, Hefei, 230601, P. R. China
*Corresponding author. Email: fangfei.j@foxmail.com
Corresponding Author
Fangfei Jiang
Available Online 15 December 2021.
DOI
10.2991/assehr.k.211209.402How to use a DOI?
Keywords
OLS Model; Influential Factors; Financial Performance; Chinese Technology Company
Abstract

Based on 459 Chinese listed technology companies from the RESSET Finance Database, this paper explores the influential factors of the financial performance of Chinese technology companies. With the application of statistics software, the data are processed through Person correlation and OLS regression analysis. The research results demonstrate that financial leverage, operating leverage, and firm size are correlated with both long-term and short-term financial performance. Growth opportunity is only associated with short-term financial performance (ROA), and government ownership has a significant correlation with long-term financial performance (R&D). Contrary to the results of previous studies, a company’s liquidity is not correlated with financial performance. The study findings highlight the importance of company-specific characteristics to Chinese technology companies and conclude the following implications. First, companies should be vigilant on the use of debt to form a healthier financing structure. Second, for large companies, the importance of R&D investment should be stressed to maintain its competitiveness. Last, policymakers should better refine the subsidy policies to incentivize R&D investment in the private sector.

Copyright
© 2021 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

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Volume Title
Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021)
Series
Advances in Economics, Business and Management Research
Publication Date
15 December 2021
ISBN
978-94-6239-483-4
ISSN
2352-5428
DOI
10.2991/assehr.k.211209.402How to use a DOI?
Copyright
© 2021 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

Cite this article

TY  - CONF
AU  - Fangfei Jiang
AU  - Zhao Xi
PY  - 2021
DA  - 2021/12/15
TI  - OLS Model Based Research on Influential Factors of Financial Performance for Chinese Technology Companies
BT  - Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021)
PB  - Atlantis Press
SP  - 2470
EP  - 2479
SN  - 2352-5428
UR  - https://doi.org/10.2991/assehr.k.211209.402
DO  - 10.2991/assehr.k.211209.402
ID  - Jiang2021
ER  -