R & D in Greek Listed Companies: A Test of Prediction Models

Abstract

Dichotomous analytical techniques such as discriminant analysis and a logit specification have been used to investigate the business decision to spend in Research and Development (R&D) investments. Using these techniques it is shown whether R & D investments can be forecasted, which are the discriminating variables that distinguish companies that have R & D investments from those that do not have R & D investments, and which statistical technique fits better to the data drawn from the companies listed on the Athens Stock Exchange. Results indicate that the above mentioned business phenomenon can be forecasted by 92.9% by logit when one year data before the R & D investment is used.