Investigating the relationship between research and development expenditures and capital budgeting methods in advanced technology industries

One of the challenging decisions that business unit managers always face is how to choose investment projects. Capital budgeting is a process that use to evaluation and select the various investment opportunities by the manager. On the other hand, research and development spending is expected to be a factor in influencing decisions related to the budgeting of capital. Therefore, the purpose of this research is to investigate the relationship between R&D expenditures and capital budgeting methods, including net present value, payback period, return on investment and capital cost. For this purpose, 97 companies survey in Tehran Stock Exchange between 1391 and 1395. The results of the hypotheses were that research and development expenditures were significantly associated with capital budgeting methods, with the exception of the cost of capital. In general, the results indicate that research and development expenditures have affected the capital budgeting methods, which could be considered by managers in the field of management accounting.