School of Business and Economics (SBE)

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Browsing School of Business and Economics (SBE) by Author "Abdul Wahid"

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    The effect of concern about reported income on discretionary spending decisions
    (University of Management and Technology Lahore, 2016) Abdul Wahid
    A lot of research has been conducted in foreign countries on research and development, but in Pakistan a much research well not be conducted in the area of R&D actions through discretionary spending decision. Prior research disclosed the R&D expense through firms SFAS NO. 2 Skaife et al, (2013). In this study under the IAS 38 to highlights the firm’s manager allocate the funds for R&D investment through discretionary spending decisions to improve the firm performance, and was investigated to R&D impact of firm profitability. Researcher for this study was select the sample of 100 firms from non-financial sectors which are listed in Pakistan Stock Exchange. The researcher will use the STATA 12 and MS excel 2013 for statistical analysis. In 1st model researcher was investigated the profitability positive and significant relationship with R&D. Simultaneously R&D effecting of the company profits and growth Branch (1974). It was determine the advertising negative and significant relationship with research and development (R&D).Both advertising and R&D are contributing of the firm future growth Debruine et al, (2011).Firm age is negative and significant relationship existed with R&D. Might to be low support of fund depends upon managerial behavior Branch (1974). Labor intensity strong insignificant and negative relationship with R&D. Labor intensity positive correlated with research and development R&D Narayanan (2015). Multinational affiliation is positive and significant relationship with research and development (R&D). Researcher to check the individual relationship, the profitability and multinational affiliation positively and significant relationship with research and development (R&D). And advertising, firm age and labor intensity is negative and insignificant relationship with R&D. In model 2ndthere is strong relationship and significant between R&D and profitability. Research and development (R&D) strongly impact of profitability within group of companies Sores et al, (2014). Advertising had shown the positive and significant association with R&D. Advertising increase the firm profitability and growth Bhagwat et al, (2011). Firm age is positive and significant relationship existed between firm age and profitability. Labor intensity positive insignificant relationship with profitability. There is positive and insignificant relationship between multinational affiliation and profitability. Scholars are providing a strong evidence labor intensity increase the innovation and profitability activities Suarez et al, (1999). Researcher to check the individual relationship, R&D, firm age and multinational affiliation is positively and significant relationship with profitability. There is positive but insignificant relationship between advertising and profitability. In 3rd model Intangible asset is positive and significant relationship with profitability. Third model shown the positive relationship between intangible asset and profitability Branch (1974). Change in intangible asset is strong negative and insignificant relationship with profitability. Subsidies is an important factor to decrease the cost of capital an increase the R&D investment events. The Korean firms increase the firm productivity and research and development (R&D) expenditures through Government subsidy (Vonortas et al, 2013). Investigate the tax credit to increase the R&D expense (Reenen et al, 2000).The market structure play a vital role in industry growth. The firms in existing market structure rather than other industry structure to increase the profit in R&D investment (Mirman et al, 2003)