Impact of Research and Development on The Profitability of Multinational Firms

Abstract

R&D is an important activity,hence the accounting of R&D becomes a significant one. The objective of the study is to analyse the impact of Research and Development activities on the profitability of the sample firms. Data for the study was collected from CMIE Prowess Database for the period of 10 years from 2008 to 2017. The statistical tools namely Correlation and Regression were used for the study. The study found that the Research and Development activities had no impact on the profitability of the sample firms during the study period.