RESEARCHING THE EFFECTS OF R\&D INVESTMENTS OF THE MANUFACTURING COMPANIES REGISTERED IN BIST CORPORATE GOVERNANCE INDEX OVER THE COMPANY PERFORMANCE

Abstract

Companies have to produce the same product either cheaper or more quality for developing their performance and enhancing competitive capacity in the international markets. R\&D investments are the best possible ways. In this study, the effect of the R\&D investments on the company performance was researched with panel data analysis method. Quarterly periods data of 2007Q1-2015Q2 period of the manufacturing companies registered in BIST corporate governance index was used in the study. Two methods were prepared for the company performance as profitability of sales and growth in sales. Firstly, the effects of the R\&D investments on the performance of the same year then the effects in the next year were researched in these prepared models. It was determined at the result of the panel data analysis that the effects of R\&D investments on the company performances were not meaningful in neither the same year nor the next year. Finally, individual effects that belong to the companies were achieved from the models. It was determined from these individual effects that R\&D investments effect some companies' performances positively while some negatively. It was seen that the companies effected positively in the first model were effected positively also in the second model; and the ones effected negatively in the first model were effected negatively in the second model. Therefore, this results show that some companies use R\&D investments efficiently while some use inefficiently.