Impact of marketing costs and the research and development on the profitability of Egypt's pharmaceutical companies

Abdo, Bassant Badr Eldin Abdo; Aboubakr, Walid Aboubakr

doi:10.21608/sjar.2019.110146

Impact of marketing costs and the research and development on the profitability of Egypt's pharmaceutical companies

نوع المستند : المقالة الأصلية

المؤلفون

¹ (Cairo University, Egypt)

² International Academy of Engineering and media Sciences, Egypt

10.21608/sjar.2019.110146

المستخلص

The main objective of this study is to examine the impact of marketing and R&D expenditures on the competitiveness of Egypt's pharmaceutical companies. In this report, Egypt Stock Exchange admitted pharmaceutical companies. Data estimator random-effect panel was used for this purpose. The results indicate that variables such as the size of a business, the capital-to-total ratio of assets and the debt-to-asset ratio affect profitability. Nonetheless, on competitiveness, business life, advertisement costs and spending in R&D are unsuccessful. Legal concerns such as the absence of patent law and the framework for pricing are reasons for the poor partnership between R&D and marketing costs and its effect on income, The results indicate that variables such as the size of a business, the capital--ratio of assets and the debt--ratio affect profitability. Nonetheless, on competitiveness, business life, advertisement costs and spending in R&D are unsuccessful. Regulatory problems including the lack of & absence of patent law and pricing controls are reasons for the poor partnership between R&D and marketing costs and its impact on the Egyptian pharmaceutical industry's profitability.

نقاط رئيسية