The Effect of Innovation on Financial Performance: A Research in BIST Manufacturing Sector

The study aims to research the effect of firms’ innovation activities on financial performance. In this context, 2018-2022 data of 80 firms in the “BIST Manufacturing Sector” were analyzed using “panel data analysis” methods. As a consequence of the analysis, it was noted that the R&D expenses of the firms did not have a statistically significant effect on financial performance. However, while intangible assets have a negative impact on return on assets, it was found to have a positive impact on return on equity. Within this scope, it is expected that investments and expenses made in innovation activities will have significant effects on financial performance in the long term.