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

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 realtionship. 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 regresion 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.