THE IMPACT INVESTIGATION OF R&D EXPENDITURE IN AUTOMOTIVE SECTOR

Abstract

Technology is one of the main factors of development at the moment when globalization is increasingvery fast. The countries that are in competitive for the development and growth have to develop technology bymaking innovation. The automotive sector is generally one of the leading sectors in which these innovations areconcentrated on R & D investments. The most powerful sector in R & D investment in Turkey is also the automotivesector. Therefore, enterprises engaged in R & D expenditures in the automotive sector in Turkey has been involvedin this study. The aim of this study is to examine the relationship between R & D expenditures, profitability andnet sales of the companies operating in the automotive sector. The data used in the study were obtained from thePublic Disclosure Platform (KAP) database. The Income Statement and balance sheets of 3 companies engagedin R & D expenditures in the automotive sector in Turkey for 2008-2014 (quarter term) were utilized in thisresearch. Unit root, co-integration and causality tests were conducted in order to examine the relationshipbetween R & D expenditures of companies and variables that one analysis net sales, operating profit, profit beforetax and net profit. Also firstly the unit root test was performed and the stability of the data was examined. As aresult of this study, it was found that this variables were consistently and there was a long-term relationshipbetween them. This relationship between R & D expenditures and profitability one way was unidirectional whereastwo-way causality was found between net sales and R & D expenditures.