Accounting choice and future performance: The case of R&D accounting in France
We examine whether managers' decisions to capitalize or expense R&D expenditures
convey information about the future performance of the firm. Focusing on a French setting …
convey information about the future performance of the firm. Focusing on a French setting …
Capitalization of R&D and the informativeness of stock prices
This paper presents both a new approach to studying the consequences of accounting
choice and a unique sample to examine the effects of accounting choice in the R&D context …
choice and a unique sample to examine the effects of accounting choice in the R&D context …
Capitalization vs. expensing and the behavior of R&D expenditures
We examine the effect of capitalization vs. expensing on UK firms' R&D expenditures. Our
investigation is motivated by the UK's mandatory switch from UK GAAP to IFRS in 2005 …
investigation is motivated by the UK's mandatory switch from UK GAAP to IFRS in 2005 …
The relation between R&D intensity and future market returns: does expensing versus capitalization matter?
HWH Chan, RW Faff, P Gharghori, YK Ho - Review of Quantitative Finance …, 2007 - Springer
The Australian accounting environment provides an ideal setting for examining the impact of
different accounting treatments of firms' R&D activities on their subsequent returns. Unlike …
different accounting treatments of firms' R&D activities on their subsequent returns. Unlike …
Capitalizing research & development: Signaling or earnings management?
This paper analyzes the capitalization of Research & Development (R&D) expenditures
under International Financial Reporting Standards (IFRS). Discretionary R&D capitalization …
under International Financial Reporting Standards (IFRS). Discretionary R&D capitalization …
R&D expenditure and earnings targets
This paper examines whether firms cut R&D spending in response to short-term earnings
pressures and how equity markets interpret such behaviour. Failure to report positive …
pressures and how equity markets interpret such behaviour. Failure to report positive …
Capitalization of R&D costs and earnings management: Evidence from Italian listed companies
G Markarian, L Pozza, A Prencipe - The International Journal of Accounting, 2008 - Elsevier
The capitalization of research and development (R&D) costs is a controversial accounting
issue because of the contention that such capitalization is motivated by incentives to …
issue because of the contention that such capitalization is motivated by incentives to …
Capitalization versus expensing: Evidence on the uncertainty of future earnings from capital expenditures versus R&D outlays
SP Kothari, TE Laguerre, AJ Leone - Review of accounting Studies, 2002 - Springer
We propose and implement a new method to estimate the relation between R&D
investments and the uncertainty of future benefits from those investments. The empirical …
investments and the uncertainty of future benefits from those investments. The empirical …
R&D reporting biases and their consequences
The immediate expensing of research and development (R&D) expenditures is often
justified by the conservatism principle. However, no accounting procedure consistently …
justified by the conservatism principle. However, no accounting procedure consistently …
The association of R&D and capital expenditures with subsequent earnings variability
We estimate the association of investments in R&D and in physical assets (CAPEX) with
subsequent earnings variability. We estimate these relations in different time periods and …
subsequent earnings variability. We estimate these relations in different time periods and …