THE RELATION BETWEEN R&D EXPENDITURES AND FINANCIAL PERFORMANCE OF TEXTILE FIRMS TRADED IN ISTANBUL STOCK EXCHANGE (BIST): EVALUATION THROUGH PANEL DATA ANALYSIS

Globalisation has brought a change in the concept of competition for business firms, transforming price competition into a competition for enhancing the quality of non-price good and services, transforming regional competition into global competition, raising brand awareness and also increasing the value added generated by brand equity. This situation led to the diversification of products and shortening of product lifetime depending on costumer behaviours. As a result, the rules determined by this competition increase the significance of Research and Development for product quality, variety and also for corporate competitiveness. In this study, panel data analysis is performed to assess not only the Textile Sector which holds an important place in Turkish Economy but also the impact of Research and Development investments of 14 firms, competing in national and international markets in this sector with public securities traded in Istanbul Stock Exchange, on their market prices, net sales and equity capital. As a result of this study, it is understood that except for share price and equity capital variables, net sales variable produces significant results. It is concluded that there is a positive correlation between intangible fixed assets and net sales.