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This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License
Article
Author(s)
Fatih Konak, Selçuk Kendirli
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DOI:10.17265/1537-1514/2016.05.002
Affiliation(s)
Fatih Konak, asst. prof., Dr., Department of Business Administration, Hitit University, Çorum, Turkey.
Selçuk Kendirli, assoc. prof., Dr., Department of Banking and Finance, Hitit University, Çorum, Turkey.
ABSTRACT
The relationship between R&D expenses and firm performance has been discussed and carefully studied for many years. Vast amount of researches have been carried out to figure out whether this relationship exists or not. Some researchers suggest that there is no relationship between R&D expenses and firm performance, others put forward the existence of negative or positive relationship. It can be asserted that possible existence as a useful information can be consumed by managers to increase the market value of firms. In that respect, the main aim of this research is to reveal the relationship between R&D and firm performance by taking into account 10 companies that are listed on the BIST Information Index for five years period (between 2009 and 2013). In order to accomplish this purpose, pooled regression model and cross sectional time series analysis technique are employed. In general, although negative and positive coefficients are found, almost, all of them are not statistically significant. In other words, according to outcomes, it can be claimed that there is no relationship between R&D and firm performance which is line with previous studies.
KEYWORDS
R&D expenses, firm performance, BIST Information Technology Index
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