Factors influencing research & development expenditures of manufacturing companies of Bangladesh

The objective of this study is to identify the factors that have an impact on research and development expenditures of manufacturing companies of Bangladesh. Data for the year 2013 to 2016 were used to accomplish the purpose. Total 32 companies have been selected from seven manufacturing industries. All of these companies are listed in DSE. Panel data analysis has been employed to examine the data. Dependent variable of this study is R&D expenditures intensity whereas independent variables are classified into two categories. They are firm specific factors and corporate governance factors. The results indicate that experienced firms are intended to spend more on R&D. Gross profit and firm size have significant negative association with R&D intensity. Leverage has significant impact on R&D of sample firms with positive coefficient. Number of independent directors in the board has significant negative correlation with firm’s R&D expenditures. Sample size is a key limitation of this study. So far most of the empirical study considers either firm specific factors or corporate governance factors. This study is an attempt that takes into account both kind of factors. It will provide a glimpse of what factors can determine the R&D expenditure except industry type.