The purpose of this study is to analyze the effect of operating expenditures consisting of research-development, marketing and general administrative items on firm performance. For that purpose, data of 16 companies for 2008-2015 operating in technology sector trading in Istanbul Stock Exchange were utilized. In the study operating expenditures items (research-development (R&D), marketingsale- distribution expenditures (MSDE) and general administrative expenditures (GAE)) were used as an independent variable and Return Of Equity (ROE) was used as a dependent variable. The relationship between firm performance and operating expenditures in the study was analyzed through Pedroni Panel Cointegration analysis. According to analysis results, there is a long term relationship between firm performance and operating expenditures items consisting of general administrative expenditures, marketing-sale-distribution expenses and researchdevelopment. When the coefficients for this long term relationship are analyzed, we can see that general administritive expenditures and firm value has an adverse, but marketing-sale-distribution expenditures and research-development has a direct relationship. i.e. while marketing-sale-distribution and research-development expenditures increase firm performance, general administrative expenditures decrease.