Impact of Marketing and R&D Expenditures on Financial Performance: A Research in Manufacturing Industry

Çağlar M., Nişel R.

Research Journal of Business and Management (RJBM), vol.4, no.3, pp.359-371, 2017 (Peer-Reviewed Journal)


Purpose-In this research it is aimed to investigate the impact of marketing and research and development (R&D) expenditures of companies on their financial performance in manufacturing industry.
Methodology-Data of 41 manufacturing companies listed on Borsa İstanbul (BIST) was gathered for the period of 2009-2015 from their financial statements. Since the data set is a panel data, methods of panel regression analysis have been performed.
Findings-As a result of the analysis, impact of marketing and R&D expenditures on firms’ performance differentiate according to financial performance measures and it is founded that they have no effect on some financial performance indicators.
Conclusion-Test results imply that marketing and R&D expenditures have positive contribution to manufacturing companies’ some of the financial performance indicators. However, manufacturing companies cannot use marketing and R&D budgets in an effective and efficient way. Manufacturing companies are not able to manage marketing and R&D activities successfully.