Financial reporting : an analytical platform for studying the relationship between transparency of listed companies and investment in research and development

Abstract

The purpose of this study is to examine the relationship between transparency of listed companies in China and their investments in research and development (R&D), using financial reporting indicators. Corporate transparency refers to the public disclosure of financial and operational information by companies, which reduces information asymmetry and has a positive impact on corporate governance and research and development investment. The study finds that companies with high transparency can obtain more external financial support and increase R&D investment, especially in capital- and technology-intensive industries. Transparency can also optimize the allocation of internal resources and improve the success rate of R&D. However, existing research has mostly focused on the impact of transparency on financial performance, lacking studies on listed companies on China's main board, particularly in the field of research and development investment. This study takes listed companies on Shenzhen's ChiNext as a sample and, through empirical analysis, finds that corporate transparency is significantly and positively correlated with the intensity of research and development investment, while company size and net cash flow are negatively correlated with the intensity of R&D investment. The study suggests that companies should improve transparency, optimize resource allocation, and strengthen research and development investment. The government should also promote corporate innovation through economic incentives.