Earnings Pressure, Product Market Competition and Enterprise Research and Development Investment

By choosing and analyzing the sample data from A-share listed companies during the seven years from 2008 to 2014, this paper presents the relationship between analysts' earnings pressures and the R&D investment of enterprise. At the same time through analyzing the competitive environment in which the listed companies stay, it also verifies the potential influence which the marketing environment may generate on that relationship. Through empirical analysis, we find that:the earnings pressures generated from the earning forecast of common analysts may cause the reduction of R&D investments, star analysts can bring more obvious earnings pressures for enterprises compared to common analysts; the reduction of R&D investments is positively correlated with the earnings pressures the listed companies bear in a competitive environment; while under state less competitive environment the earnings pressures generated from analysts' earnings forecast do not have great effect on the R&D activities of a company.