Title :
The Value-Relevance of R&D Expenditure: Experience from China
Author :
Zhang, Xuan ; Gao, Miaomiao ; Zhou, Mi
Author_Institution :
Sch. of Manage., Hefei Univ. of Technol., Hefei, China
Abstract :
This paper investigates the value-relevance of research and development (R&D) expenditures in China for the first time by using a sample of all Chinese listing companies´ data, the results indicate that R&D expenditure can bring future benefits in Chinese companies, but the stock market can not evaluate the R&D investment very well. Based on the results, the paper especially suggests that the future research of R&D problems should consider industry as an important factor, and the managers may use the new accounting standard of capitalizing R&D expenditure as a new method for earning management.
Keywords :
investment; research and development; stock markets; Chinese company; R&D expenditure; R&D investment; accounting standard; research and development expenditure; stock market; value-relevance; Analytical models; Companies; Industries; Investments; Research and development; Stock markets;
Conference_Titel :
Management and Service Science (MASS), 2010 International Conference on
Conference_Location :
Wuhan
Print_ISBN :
978-1-4244-5325-2
Electronic_ISBN :
978-1-4244-5326-9
DOI :
10.1109/ICMSS.2010.5578212
