Role of Research and Development on Profitability: An Empirical Research on Textile Listed Firms in Vietnam

Abstract

The main purpose of this study is to determine the effect of R&D spending on firm’s profitability. The data was collected from listed firms in textile industry in Vietnam, from 2010-2020 period. The results show that, R&D spending, financial investment is positively and significantly influenced to ROA, ROE. However, financial leverage and firm size are negatively impact to firm’s financial performance. In addition, there is no relationship between profitability and fixed assets, intangible asset of the company. The research also gives some implications for Vietnamese enterprises to increase their financial performance.