R&D EXPENSES AND FIRM SUSTAINABILITY RELATIONSHIP

Abstract

Businesses have started to give importance to R&D investments as a result of increasing the use of information technologies brought by the concept of Industry 4.0 and the increase in the use of artificial intelligence and robotic structures, and as a result of incentives such as tax advantage for R&D investments by governments.The sustainability of companies is possible by maintaining their economic goals and environmental and social responsibilities in a harmonious and balanced manner. In addition, the concept of sustainability appears as a criterion for companies to access credit opportunities. In the study, an analysis of R&D expenditures and net profitability in BIST 30 companies was tried. Although the positive effect of R&D expenditures on firm profitability in the short run is stated in the studies conducted in the literature, the existence of this effect could not be determined in local studies in the long run.