Journal of Iranian Accounting Review

Journal of Iranian Accounting Review

The Impact of R&D Expenditure on the Performance of Companies Listed in Tehran Stock Exchange

Document Type : Original Article

Authors
Jamal Barzegari Khanagha 1
Fatemeh Akhavan Bahabadi 2
Salime Ghaedi 3
Amir Hossein Zare 3
Hamid Zare Hosseinabadi 4
1 Assistant Professor of Accounting, Yazd University, Yazd, Iran
2 M.A. in Accounting, Islamic Azad University of Yazd, Yazd, Iran
3 M.A. in Accounting, University of Yazd, Yazd, Iran
4 M.A. in Accounting, University of Isfahan, Isfahan, Iran
10.22055/jiar.2017.13251
Abstract
The main players in each country's economy are businesses that play an important role in economic growth. Thus to achieve the desired goals, managers should organize their source of finance. Companies, for being in global competitiveness, have to invest in substruction, technology and R&D so that they can develop and promote theirs products and improve their performance. In this study, the cost of R&D on corporate performance is evaluated, using the indicators of operating profit, operating cash flow and economic added value to evaluate the performance of companies. The data of 63 listed companies in Tehran Stock Exchange were selected for the period from 1386 to 1392 to test the hypotheses, and methods of generalized least squares and combined data were used. Results indicated that the cost of research and development and the company's performance using the measure of operating profit does not show a significant relationship. But research and development costs and economic add value indicated a positive impact on the standards of operational cash flow.
Keywords
R&D Expenditure
Operating Profit
Operating Cash Flow
Economic Value Added
Journal of Iranian Accounting Review
Volume 4, Issue 14
Spring 2017
Pages 1-18