Journal article
Effects of R&D policy choice on accounting performance and market value
R & D management, Vol.47(4), pp.545-556
09/2017
DOI: 10.1111/radm.12225
Abstract
Using primary data that was gathered from the annual reports of companies listed in the Chinese Stock Exchanges, this study analyzes and compares the different effects of R&D policy choice on their accounting performances and market values. For the period 2007 through 2014, the results show that different R&D policy choices provided different implications in firm value and firm strategy to the market. Specifically, the firms choosing to capitalize their R&D investments have higher market value, implying that the strategy was focused on sustaining their long‐term development. On the contrary, the companies selecting to expense their R&D expenditure have higher accounting performance and the focus was on improving short‐term gains. The results of this study suggest that the policy choice on R&D capitalization and expensing is a trade‐off result between the accounting performance and the market value of a firm.
Details
- Title: Subtitle
- Effects of R&D policy choice on accounting performance and market value
- Creators
- Yanni Wang - Xidian UniversityRong Du - Xidian UniversityKai S Koong - Xidian UniversityWeiguo Fan - Virginia Tech
- Resource Type
- Journal article
- Publication Details
- R & D management, Vol.47(4), pp.545-556
- DOI
- 10.1111/radm.12225
- ISSN
- 0033-6807
- eISSN
- 1467-9310
- Number of pages
- 12
- Grant note
- National Natural Science Foundation of China (71203174 ; 71271164) Soft Science Projects of Xi'an City (SF1503(3)) Fundamental Research Funds for the Central Universities (JB160602)
- Language
- English
- Date published
- 09/2017
- Academic Unit
- Business Analytics
- Record Identifier
- 9984083251402771
Metrics
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