Analysis of the Relationship between R & D Expenditure and Profitability: A Sample Application from BIST

Main Article Content

Necmiye Serap Vurur Kenan Ilarslan

Abstract

Gaining competitive advantage of countries and firms largely depends on innovation and developing new products.  R & D activities provide important contribution to growth and also performance of firms. The pharmaceutical sector is a strategic sector as well as its added value is high. Moreover, this sector necessitates high R & D expenditures. In this study, a sample application will be given after emphasizing to the global developments in the R & D and pharmaceutical sector. In this context, the causality relationship between R & D expenditures, gross profit and operation profit variables of one of the largest pharmaceutical firm in Turkey is investigated based on quarterly time series for the period of 2005:1-2015:3.  The relationships between variables are tested by Granger Causality Test. According to the findings, it is found that there is a one-way causality relationship from R & D expenditures towards operational profit

Article Details

How to Cite
VURUR, Necmiye Serap; ILARSLAN, Kenan. Analysis of the Relationship between R & D Expenditure and Profitability: A Sample Application from BIST. Journal of Multidisciplinary Developments, [S.l.], v. 1, n. 1, p. 103-112, dec. 2016. ISSN 2564-6095. Available at: <http://jomude.com/index.php/jomude/article/view/13>. Date accessed: 22 sep. 2021.
Section
Social Sciences - Regular Research Paper

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