The moderating role of R&D costs on the relationship between financial constraints and dividends on the value of pharmaceutical companies listed on the stock exchange

In the present study, the role of research and development costs on the relationship between financial constraints and profit sharing on the value of pharmaceutical companies admitted to the Tehran Stock Exchange has been investigated. Valuation of companies is one of the necessities of planning for managers and investors. If the company is successful in creating value, not only the investors and internal people of the companies, but also the society on a wider level will benefit from the creation of value.

In this research, the pharmaceutical companies admitted to the Tehran Stock Exchange between 2011-2018, including 34 companies, were investigated. The information was collected by using the data available in Rahavard Novin software and reviewing reports and financial statements by referring to the official website of the Tehran Stock Exchange; And correlation and regression tests of hypotheses were tested using Eviews10 software.

The result of the first hypothesis test showed that there is an inverse and significant relationship between financial constraints and the value of pharmaceutical companies. The results of the second hypothesis test showed that there is a direct and significant relationship between profit sharing and the value of pharmaceutical companies. Finally, the results of the third hypothesis test showed that research and development costs have a significant effect on the relationship between financial constraints and company value, and the fourth hypothesis also showed that research and development costs have a significant effect on the relationship between profit sharing and company value.

Originality / Value: 

The results of this research, in addition to developing the theoretical foundations of research and development expenses, especially in the country's pharmaceutical industry, will help the managers of this industry and investors to estimate the research and development costs by considering factors such as how costs change with the company's profitability change. and consider the positive effect of research and development costs in optimizing the value of companies and its negative effects when financial constraints over time.