Impact of Companys Capital Investment and R & D on Japanese Corporate Performance

This study examined the correlation between capital investment, and R& D costs with corporate performance such as sales, gross profit of sales, operating profit, ordinary income, or net profit after tax. This research performed regression analysis with corporate performance as dependent variable and capital investment and R& D cost as independent variable. As a sample, this study used data of companies that could be obtained in Nikkei 225 companies. The period of data was between 1990 and 2015. Most of results of this study indicated that capital investment and R& D costs were negatively correlated with corporate performance, although some results indicated that capital investment and R& D costs were positively correlated with company performance. The result of this study was in accordance with many previous researches.