Impact of marketing and R D expenditures on financial performance: a research in manufacturing industry

Abstract

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.