Does R&D investment moderate the relationship between the COVID-19 pandemic and firm performance in China’s high-tech industries? Based on DuPont components

The spread of coronavirus disease 2019 (COVID-19) has had a significant impact on business and economies globally. This paper aims to investigate the impact of COVID-19 on firm performance in China’s high-tech industries. The population of this paper is 116 companies listed on the sci-tech innovation board (STAR market) of the Shanghai stock exchange. DuPont analysis is applied to measure firm performance including return on equity (ROE), return on assets (ROA), asset turnover ratio (ATO), and profit margin. The empirical results show that the COVID-19 pandemic has a significant and negative impact on ROE, ROA, and ATO in high-tech industries, and research and development (R&D) investment has a moderating role in the relationship between the COVID-19 pandemic and firm performance. The findings may play a guiding role for corporate managers and policymakers to overcome this formidable crisis in the era of COVID-19.