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Impact of R&D Expenses on Firm Performance: Empirical Evidence from the BIST Information Technology Index


  • Fatih KONAK

    (Hitit University)

  • Selcuk KENDIRLI



The relationship between R&D expenses and firm performance has been discussed and carefully studied for many years. Vast amount of research have been carried to figure out whether this relationship exist 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 an 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 5 years periods (between 2009 and 2013). In order to accomplish this purpose, we employed pooled regression model and cross sectional time series analysis technique. In general, although negative and positive coefficients are found, almost, all of them is 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.

Suggested Citation

  • Fatih KONAK & Selcuk KENDIRLI, 2014. "Impact of R&D Expenses on Firm Performance: Empirical Evidence from the BIST Information Technology Index," International Conference on Economic Sciences and Business Administration, Spiru Haret University, vol. 1(1), pages 192-197, December.
  • Handle: RePEc:icb:wpaper:v:1:y:2014:i:1:192-197

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    References listed on IDEAS

    1. Bronwyn H. Hall & Grid Thoma & Salvatore Torrisi, 2006. "The market value of patents and R&D: Evidence from European firms," KITeS Working Papers 186, KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy, revised Nov 2006.
    2. Connolly, Robert A & Hirschey, Mark, 1984. "R&D, Market Structure, and Profits: A Value-Based Approach," The Review of Economics and Statistics, MIT Press, vol. 66(4), pages 682-686, November.
    3. Koellinger, Philipp, 2008. "The relationship between technology, innovation, and firm performance--Empirical evidence from e-business in Europe," Research Policy, Elsevier, vol. 37(8), pages 1317-1328, September.
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    More about this item


    R&D Expenses; Firm Performance; BIST Inf. Tech. Index;

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill


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