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The Impact of Investing in Research and Development on Performance: Evidence from Jordan |
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PP: 1831-1840 |
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doi:10.18576/isl/120527
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Author(s) |
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Fuad N. Al-Shaikh,
Ahmad Hagen,
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Abstract |
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| This research aimed to investigate the effect of investing in research and development on the performance of Jordanian companies. Investment in research and development was measured by the ratio of investment to sales and the number of researchers. Financial performance was measured by financial ratios. The population of the study consisted of 45 industrial companies listed on the Amman Stock Exchange. Data was obtained only from 21 companies for seven years. The results indicate that the level of investment in research and development is very low compared to international standards. The results also show no significant relationships between investment in research and development and the financial performance of the companies. The research provides some conclusions and recommendations in light of the results.
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