THE EFFECT OF THE FIRMS’ R&D EXPENDITURES ON RETURN ON ASSETS AND RETURN ON EQUITY: EVIDENCE FROM BIST TECHNOLOGY SECTOR

Yıl 2018, Cilt: 6 Sayı: 3, 39 - 60, 26.12.2018

Hasan Hüseyin Yıldırım , Şakir Sakarya

https://doi.org/10.22139/jobs.425497

Cited By: 8

Öz

Innovation and R&D (Research and Development) are the most important
factors that firms need to grow and improve their performances in today's
competitive world. According to the micro perspective, R&D is the
activities of companies to produce and develop a new product to increase their
sales and profitability. From a macro point of view, it covers the activities
of the countries to gain superiority in foreign trade. Although the R&D
expenditure in Turkey lags behind OECD countries, it has been increasing from
year to year. By making it possible to produce innovative products and
services, R&D investments provide long-term growth and competitive
advantages and create value for corporations. This study aims to investigate
the importance of the impact of the R&D expenditures which show on
increasing scale day by day on the financial performance of the companies.

To achieve this study’s aim, the impacts of the R&D expenditures on the
return on assets and return on equity of were tested with panel data analysis
for the firms operating in BIST technology and information sectors. The data
set of the study covers the years 2009-2016. There are 16 companies in the BIST
Technology Index during the study period. Five companies are selected from
these 16 companies. R&D expenditures, return on assets (ROA) and return on
equity (ROE) of these five companies were taken into consideration in the
analysis. In the study, Lin. Ge and Goh (2011), Polat and Elmas (2016), Ehie
and Olibe (2010) and Choi and Williams (2013) studies were referenced. To
analyze the relationship between R&D and ROA variables, two different
models were employed. In both models, ARGE variable was used as an independent
variable. In the first model, active profitability was used as a dependent
variable (ROA). In the second model, the equity variable (ROE) was used as the
dependent variable.

The correlation matrix of the variables was formed primarily. There is a
“0.1397” relationship between R&D expenditures and return on assets (ROA).
Again, there is a “0.2152” relationship between R&D expenditures and return
on equity (ROE). The correlation between R&D expenditures and ROA and ROE
is very low. The time series includes the unit root. In other words, it is
non-stationary. Analyzes with non-stationary time series lose their
significance. In the analysis with non-stationary series, as the problem of
spurious regression will emerge, the stagnation process in series is tried to
be provided by difference or logarithmic transformations. Some tests were
applied to the variables to determine whether the series were stationary.
Levin, Lin and Chu (LLC), ADF and Im, Pesaran and Shin As a result of W-stat
(IPS) unit root tests, all of the variables were stationary for constant and
constant and trend. In the study, the co-integration between the series was
investigated by Kao and Pedroni test. Pedroni (2004) developed seven different
test statistics in order to test the existence of a co-integration relationship
between variables. The null hypothesis of Pedroni and Kao test is assumed to be
no co-integration between the series. According to the results of Pedroni and
Kao panel co-integration test, it is decided that there is a co-integration
relation of the variables for model 1 and model 2. In other words, the
variables used in the model for both models act together in the long term, and
the model predictions with the level values of these variables will not include
the spurious regression problem. In the long term, after the co-integration
results between variables, the causality relationship between the variables
used in both models was investigated by Granger causality analysis. Since both
model variables are co-integration in the I(0), the error correction model (VECM)
is used in the established equation. The results of Granger causality analysis
show that there is causality from R&D expenditures to asset profitability
in Model 1. Also in Model 2, there is a one-way causality from R&D
expenditures to equity profitability. Regression analysis, which is one of the
most preferred estimation methods in econometric analysis, is used to calculate
the effect of the independent variable or variables on the dependent variable.
In this study of using panel regression analysis, two models were analyzed. In
the first model, whether an increase in R&D expenditures increases the
profitability of assets, and in the second, an increase in R&D expenditures
increases the profitability of equity. As a result of the regression analysis
which made after the causality analysis shows that the R&D expenditure has
a meaningful positive effect on ROA and ROE.

In today's world where the importance of R&D and innovation is
increasing day by day, businesses that want to maximize their profits and increase
their sales in this way have started to give importance to R&D process by
making innovations in their activities, products and services.

In
this study, panel data analysis was performed by taking into account R&D
expenditures and assets and equity profitability of 5 out of 16 companies
included in BIST Technology Index. A simple regression method was chosen, and
only the effect of R&D on profitability was examined. However, there are
many factors that affect the profitability of the enterprise. For this reason,
it can be assumed that the coefficient of R&D effect on ROA and ROE is low.
The results of this study to explain the relationship between R&D and ROA
and ROE are given by Scherer (1965), Hanel and Alain (2002), Çiçek and Onat
(2012), Doğan and Yıldız (2013), Kocamış and Güngör (2014) and Light and
colleagues (2016). When it is thought that R&D expenditures affect
profitability positively, today's investments by businesses in R&D will
help future businesses to keep up with the era and survive in intense
competition. The establishment of units that will work for R&D in
enterprises and the human capital capable of producing innovation should be
strengthened. To carry out these transactions, management should allocate
sufficient budget for research and development. Turkey, as a country in the
developing countries as a group, giving importance to R&D activities can
provide the production of high value-added products. At this point, the public
should support the research and development activities in the enterprises, and
the tax exemptions to the enterprises which carry out R&D activities in
certain ratios will increase the motivation of the enterprises to R&D.

Anahtar Kelimeler

R&D expenditure, Financial Performance, Panel Data Analysis

FİRMALARIN AR-GE HARCAMALARININ AKTİF VE ÖZSERMAYE KARLILIĞINA ETKİSİ: BİST TEKNOLOJİ SEKTÖRÜNDE BİR UYGULAMA

Öz

Amaç: Ar-Ge ve
yenilik günümüz rekabet dünyasında, firmaların performanslarını arttırmak ve
büyümek için en çok ihtiyaç duyduğu unsurların başında gelmektedir.  OECD
ülkelerinin Ar-Ge harcamaları ile karşılaştırıldığında Türkiye’deki Ar-Ge payı
az da olsa yıllar itibarıyla artış göstermektedir. Yenilikçi hizmet ve
ürünlerin üretilmesini mümkün kılan Ar-Ge yatırımları firmalara uzun dönemli
rekabet avantajı ve büyüme sağlayan ve değer yaratan faaliyetlerdir. Bu
çalışmanın amacı, önemi her geçen gün biraz daha artan Ar-Ge harcamalarının
firmaların finansal performansına etkisini araştırmaktır.

Yöntem: Bu amaçla
BIST teknoloji ve bilişim sektöründe faaliyet gösteren firmaların Ar-Ge
harcamalarının aktif karlılığına(ROA) ve öz sermaye karlılığına (ROE) etkisi
panel veri analizi ile test edilmiştir.

Bulgular: Analiz
sonuçlarına göre Ar-Ge harcamaları ile hem ROA hem de ROE arasında uzun dönemde
nedensellik ilişkisinin var olduğu tespit edilmiştir. Ar-Ge harcamalarından ROA
ve ROE’ye tek yönlü bir nedenselliğin olduğu tespit edilmiştir. Nedensellik
sonucundan sonra yapılan regresyon analizinde Ar-Ge harcamasının ROA ve ROE’de
anlamlı ve pozitif bir etkisinin olduğu sonucuna ulaşılmıştır.

Sonuç: Ar-Ge
harcamalarının karlılığı pozitif yönde etkilediği düşünüldüğünde, işletmelerin
Ar-Ge’ye yönelik olarak yapacakları bugünkü yatırımlar gelecekte işletmelerin
çağa ayak uydurabilmesinde ve yoğun rekabet koşullarında ayakta kalabilmesine
yardımcı olacaktır.

Anahtar Kelimeler

Ar-Ge Harcamaları, Finansal Performansı, Panel Veri Analizi

Kaynakça

• Alper, D. ve Aydoğan, E. (2016) “Relationships Between R&D and Corporate Performance: An Empirical Analysis in Istanbul Stock Exchange”, Paradoks Ekonomi, Sosyoloji Ve Politika Dergisi, 12(2): 99-114.
• Bilici, M. S. (2002) “Ülkemizin Teknolojik Gelişiminde Ar-Ge’nin Önemi”, Madencilik Bülteni, 63: 14-17.
• Brown, T. E. ve Jan U. (2004) “Innovation, Entrepreneurship and Culture”, Edward Elgar Publishing Limited, İngiltere.
• Chauvin, K. W. ve Mark, H. (1993) “Advertising, R&D Expenditures and The Market Value of The Firm”, Financial Management, 22 (4): 128-140.
• Choi, S. B. ve Williams, C. (2013) “Innovation and Firm Performance in Korea and China: a Cross-Context Test of Mainstream Theories”. Technology Analysis & Strategic Management, 25(4): 423-444.
• Çiçek, H. ve Onat, O. K. (2013) “İnovasyon Odaklı Faaliyetlerin Firma Performansına Etkisinin Veri Zarflama Analizi İle Belirlenmesi; İMKB Üzerine Bir Araştırma”, Mehmet Akif Ersoy Üniversitesi Sos-Yal Bilimler Enstitüsü Dergisi, 4 (7): 46-53.
• Doğan, M. ve Yıldız, F. (2013) “Araştırma Ve Geliştirme Harcamaları Firma Karlılığını Etkiler Mi? Türkiye Örneği”, V. International Congress on Entrepreneurship: 166-172, 5-7 Haziran, Almatı: Süleyman Demirel Üniversitesi.
• Ehie, I. C. ve Olibe, K. (2010) “The Effect Of R&D Investment on Firm Value: An Examination of USA Manufacturing and Service Industries”. Int. J. Production Economics, 128: 127-135.
• Elmas, B. ve Polat, M. (2016) BIST Kurumsal Yönetim Endeksine Kayıtlı İmalat Firmaları Özelinde Ar-Ge Yatırımlarının Firma Performansına Etkisinin Araştırılması”, Global Business Research Congress (Gbrc), May 26-27, 2016, Istanbul, Turkey.
• Gharbi, S., Sahut, J.-M. ve TEULON, F. (2014) “R&D Investments And High-Tech Firms' Stock Return Volatility”. Technological Forecasting & Social Change, 88: 306-312.
• Hajiheydari, A., Mohsen, D. ve Asghar, S. (2011) “The Effect of Research and Development Costs on The Profitability of Pharmaceutical Companies”, Interdisciplinary Journal of Contemporary Research in Business, 3(8): 914-918.
• Hanel, P. ve Alain, S. (2002) “Effects of R&D Spillovers on The Profitability of Firms, Review of Industrial Organization”, 20 (4): 305-322.
• Hsu, F.J., Chen, M.Y., Chen, Y.C. ve WANG, W.C. (2013) “An Empirical Study on The Relationship Between R&D And Financial Performance”, Journal of Applied Finance & Banking, 5(3): 107-119.
• Işık, N., Engeloğlu, Ö. ve KILINÇ, E. C. (2016) “Araştırma ve Geliştirme Harcamalarının, Kârlılık ve Satışlar Üzerindeki Etkisi: Borsa İstanbul Firmaları Üzerine Bir Uygulama”, Erciyes Üniversitesi İktisadi Ve İdari Bilimler Fakültesi Dergisi, (47): 27-46.
• Kiraci, M. ve Arsoy, M. F. (2014) “Araştırma Geliştirme Giderlerinin İşletmelerin Karlılığı Üzerindeki Etkisinin İncelenmesi: İMKB Metal Eşya Sektöründe Bir Araştırma”, Muhasebe Ve Denetime Bakis Accounting & Auditing Review, 13(41): 33.
• Kocamış, U. T. ve Güngör, A. (2014) “Türkiye’de Ar-Ge Harcamaları Ve Teknoloji Sektöründe Ar-Ge Giderlerinin Kârlılık Üzerine Etkisi: Borsa İstanbul Uygulaması”. Maliye Dergisi, 166: 127-138.
• Lin, Z., Ge, C. ve Goh, K. Y. (2011, July) “R&D Investment and Firm Performance in IT Companies: An Empirical Investigation Across IT Industry Sectors”, In PACIS.
• Lööf, H. ve Heshmati, A. (2008) “Investment and performance of firms: correlation or causality?”, Corporate Ownership & Control, 6(2): 268-282.
• Morbey, G. K. (1988) “R&D: Its Relationship to Company Performance”. Journal of Product Innovation Management, 5(3): 191-200.
• Nord, L. J. (2011) “R&D Investment Link to Profitability: A Pharmaceutical Industry Evaluation. Undergraduate Economic Review, 8(1): 1-16.
• Özcan, M., Ağırman, E. ve Yılmaz, Ö. (2014) “Ar-Ge Yatırımlarının Hisse Senedi Getirisi Üzerine Etkisi: BIST Teknoloji Ve Bilişim Firmaları Üzerine Bir Uygulama”, Maliye Dergisi, 166: 139-158.
• Öztürk, M. B. (2008) “Araştırma-Geliştirme Yatırımlarının Firma Değeri Üzerindeki Etkisi: İMKB'de Bir Uygulama”, Verimlilik Dergisi, 1: 25-34.
• Pantagakis, E., Terzakis, D. ve Arvanitis, S. (2012) “R&D Investments and Firm Performance: An Empirical Investigation of The High Technology Sector (Software And Hardware) in The E.U. Technological Educational Institute”, Available at SSRN: https://ssrn.com/abstract=2178919 or http:// dx.doi.org/10.2139/ssrn.2178919
• Parcharidis, E. ve Nikos C. V. (2007) “Investments in R&D And Business Performance. Evidence From The Greek Market”, Aristotle University of Thessaloniki Department of Economics Working Paper
• Pedroni, P. (2004) “Panel Co-integration; Asymptotic and Finite Sample Properties of Pooled Time Series Tests with an Application to the PPP Hypothesis”, Econometric Theory, 20: 597-625.
• Scherer, F. M. (1965) “Corporate Inventive Output, Profits and Growth”, Journal of Political Economy, 73 (3): 290-297.
• Takım, Y. (2013) “R&D, Innovation and Stock Market Performance: A Study on The Istanbul Stock Exchange”. Yüksek Lisans Tezi, İzmir Ekonomi Üniversitesi, Sosyal Bilimler Enstitüsü, İzmir.
• Tsai, K. H. ve Wang, J. C. (2005) “Does R&D Performance Decline with Firm Size?—A Re-Examination in Terms Of Elasticity”, Research Policy, 34(6): 966-976.
• Ünal, T. ve SEÇİLMİŞ, N. (2014) “Satış Hasılatı Atışında Ar-Ge’nin Rolü ve Kârlılığın Ar-Ge Harcamalarına Etkisi: Gaziantep Örneği”, Yönetim Ve Ekonomi Araştırmaları Dergisi, 22: 202-210.
• Wakelin, K. (2001) “Productivity Growth And R&D Expenditure in UK Manufacturing Firms”, Research Policy, 30(7): 1079-1090.
• Yücel, R. ve Ahmetoğulları, K. (2015) “Ar-Ge Harcamalarının Firmaların Net Kâr Değişimi ve Hisse Başına Kârlılığına İnovatif Etkisi: BIST Teknoloji Yazılım ve Bilişim Sektöründe Bir Uygulama”, Abant İzzet Baysal Üniversitesi Sosyal Bilimler Enstitüsü Dergisi.
• Yücel, T. ve Kurt, G. (2003) “Araştırma-Geliştirme Ve Pazarlama Giderlerinin Firma Kârlılığı Üzerine Etkisi”, İktisat İşletme ve Finans, 18 (209): 18-24.