The relationship between Ar-Ge expenditures and stock prices of ASELSAN as a defense industry company in Turkey examining by ARDL bound test

The unique geopolitical position of Turkey further increases the importance of the defense industry. This study provides information about the Turkish defense industry sector and one of the most important companies, ASELSAN." The aim of this study is to reveal the relationship between ASELSAN's R&D expenses and stock prices in the defense industry sector in Turkey and to track ASELSAN's development in this aspect over the years. While there are studies examining the relationship between R&D expenses and stock prices, they are generally conducted on technology companies. In this context, this study focuses solely on ASELSAN, a defense industry company. Additionally, the data used in the study are up-to-date over the years. In this context, data for the period 2006Q1-2021Q4 is analyzed using the Autoregressive Distributed Lag (ARDL) boundary test method to examine the short-term and long-term relationships between ASELSAN's R&D expenses and stock prices in the BIST defense industry sector. According to the findings obtained from the analysis, a statistically significant relationship between ASELSAN's R&D expenses and stock prices has been identified. The ARDL boundary test results indicate a positive relationship between R&D expenses and stock prices in the long term, while a negative relationship is found in the short term.