Examination of the effect of marketing and R&D expenditures on the financial performance, an application on the production enterprises operating in BIST

Nowadays, the companies strive to increase their sales and profitability by meeting their customer needs, while on the other hand they are engaged in intensive research and development and marketing activities to maintain their existence and improve the quality of products and services. The aim of this thesis is to determine the relationship between the production companies' marketing and research and development spending and their financial performance. In the thesis, as operating expenses, marketing and R&D expenditures; financial performance criteria are determined as net profit, net sales, return on equity, return on assets and market value / book value. Between 2007 and 2016, 580 observations obtained from the annual data of 58 manufacturing companies in Borsa Istanbul were analyzed by Granger Causality Test. According to the results of the analysis; One-way causality from net sales to R&D expenditures, one-way causality from marketing spending to equity profitability and two way causality relation between marketing expenditures and net sales were determined. In addition, the causality relationship between R&D and marketing expenditures and other variables has not been determined. Keywords: Research and Development Expenditures, Marketing Expenditures, Financial Performance, Production Enterprises, Granger Causality Test