The Intermediary Role of Capital Structure and Cash Attitude in the Relationship between Research and Development (R&D) Capacity and Financial Performance : The Case of Istanbul Manufacturing Industry Enterprises

Abstract

The aim of this study is to investigate whether capital structure and cash attitude play an intermediary role in the relationship between research and development (R&D) capacity and financial performance. The research data are obtained from business managers, who are medium and large scale companies operating in Istanbul and are also an R&D center, by survey method. Mediator analysis technique is applied to 139 data obtained. Structural equation model was used in the analysis of the data. SmartPLS program was used in the estimation of YEM. Analysis results revealed that R&D capacity and cash attitude have a direct effect on financial performance, whereas capital structure has no direct effect on financial performance. In addition, the research results supported the intermediary role of cash attitude in the relationship between R&D capacity and financial performance, while not supporting the intermediary role of capital structure.