Open AccessImpact of Research and Development on Firm Performance
Author(s) -
Aimen Ghaffar,
Waseem S. Khan
Publication year - 2014
Publication title -
international journal of accounting and financial reporting
Language(s) - English
Resource type - Journals
ISSN - 2162-3082
DOI - 10.5296/ijafr.v4i1.6087
Subject(s) - economic shortage , business , research development , earnings , return on assets , return on equity , earnings per share , order (exchange) , equity (law) , industrial organization , accounting , finance , test (biology) , stock exchange , paleontology , linguistics , philosophy , government (linguistics) , political science , law , biology
This study has been conducted to see the impact of research and development budget on the performance of the firms. Research and development is an increasingly important concept in order to have success in this era. The paper finds out the relationship between research and development and firm performance. Firm performance is measured through the ratios of return on assets, return on equity and the earnings per share of the firms. The data analyzed by using SPSS. Results confirmed the positive correlation between the dependent and the independent variables. Limitations of the study were shortage of time and studying of a single sector. In future, different other sectors can be studied to see the impact of research and development on their performance.