Threshold effect of corporate innovation on the financial performance of the electronic equipment manufacturing industry.

This study investigates the threshold effect of R&D behaviour on financial performance by using the Chinese electronic equipment manufacturing industry as the sample. Results in this study reveal the co-effect of innovation input (R&D) and output (patents) on corporate financial performance, while patent output has a threshold effect that allows financial performance to be enhanced via R&D input, and the relationship between patent output and financial performance changes significantly when R&D input is used as a threshold. [ABSTRACT FROM AUTHOR]