FİRMALARIN AR-GE HARCAMALARININ AKTİF VE ÖZSERMAYE KARLILIĞINA ETKİSİ: BİST TEKNOLOJİ SEKTÖRÜNDE BİR UYGULAMA
THE EFFECT OF THE FIRMS’ R&D EXPENDITURES ON RETURN ON ASSETS AND RETURN ON EQUITY: EVIDENCE FROM BIST TECHNOLOGY SECTOR

Summary/Abstract: Innovation and R&D (Research and Development) are the most important factors that firms need to grow and improve their performances in today's competitive world. According to the micro perspective, R&D is the activities of companies to produce and develop a new product to increase their sales and profitability. From a macro point of view, it covers the activities of the countries to gain superiority in foreign trade. Although the R&D expenditure in Turkey lags behind OECD countries, it has been increasing from year to year. By making it possible to produce innovative products and services, R&D investments provide long-term growth and competitive advantages and create value for corporations. This study aims to investigate the importance of the impact of the R&D expenditures which show on increasing scale day by day on the financial performance of the companies. To achieve this study’s aim, the impacts of the R&D expenditures on the return on assets and return on equity of were tested with panel data analysis for the firms operating in BIST technology and information sectors. The data set of the study covers the years 2009-2016. There are 16 companies in the BIST Technology Index during the study period. Five companies are selected from these 16 companies. R&D expenditures, return on assets (ROA) and return on equity (ROE) of these five companies were taken into consideration in the analysis. In the study, Lin. Ge and Goh (2011), Polat and Elmas (2016), Ehie and Olibe (2010) and Choi and Williams (2013) studies were referenced. To analyze the relationship between R&D and ROA variables, two different models were employed. In both models, ARGE variable was used as an independent variable. In the first model, active profitability was used as a dependent variable (ROA). In the second model, the equity variable (ROE) was used as the dependent variable.

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