The impact of investment and R&D subsidies on firm performance : evidence from Istanbul Stock Exchange
Part of : MIBES Transactions : international journal ; Vol.2, No.1, 2008, pages 1-13
Issue:
Pages:
1-13
Author:
Abstract:
As the government budget allocated to industrial policy tools for economic development increased, literature on the effect of these policy tools flourished. Industrial subsidies are one of the industrial policy tools which have been investigated in previous literature, thoroughly. Both firm and industry level literature on industrial subsidies mainly focus on two issues; productivity and employment. However, the impact of industrial subsidies on firm performance has not been investigated at firm level widely. The purpose of this study is to analyze the impact of industrial subsidies on firm performance. Within industrial subsidies, investment allowances and research and development (R&D) subsidies have been analyzed separately by utilizing a panel data of top 100 firms listed at Istanbul Stock Exchange from different industries. The results indicate that investment subsidies have negative impact on firm performance measured in terms of return on assets, return on sales and return on equity regardless of industry differences. Additionally, results show that investment subsidies have negative impact on sales and income growth but positive impact on asset growth. R&D subsidies also have negative impact on firm performance measured by return on sales and return on assets.
Subject (LC):
Keywords:
investment subsidy, R&D subsidy, ISE, firm performance
Notes:
Περιέχει σημειώσεις, πίνακες και βιβλιογραφία
