The Informativeness of Earnings Conditional upon the Capitalization of R&D Expenditures

• 영문명: The Informativeness of Earnings Conditional upon the Capitalization of R&D Expenditures
• 발행기관: 한국전산회계학회
• 저자명: Song Dong Gun
• 간행물 정보: 『한국전산회계학회 학술대회 논문집』2012년 춘계학술대회 발표집, 1~1쪽, 전체 1쪽
• 주제분류: 경제경영 > 회계학
• 파일형태: PDF
• 발행일자: 2012.06.30

영문 초록

This study examined factors of R&D capitalization, and tested whether capitalization of R&D firms were more informativeness than R&D expensed firms. In order to perform them, this study analyzed to use two-stage approach model that were suggested by Heckman(1979) and Lee(1979). The first step estimated to use Probit model for factors of R&D capitalization, then evaluated inverse Mills ratio for firms that expenditured R&D to use parameter from this model. The second step controlled inverse Mills ratio that is evaluated from the first step that based on Collins et al.(1994), and estimated coefficient value from regression model that conditional upon R&D capitalization. Next, this paper examined factors of R&D capitalization conditional upon technological intensity and revision of accounting standard, and tested that capitalization of R&D firms were more informativeness than R&D expensed firms. Following to analysis results of factors of R&D capitalization, the higher R&D intensity, beta, and debt ratio, the more capitalization of R&D, and the higher earnings change, the more expense of R&D. Following to analysis results of informativeness based on factors, capitalization of R&D firms were more informativeness than R&D expensed firms. Additionally, this study also investigates whether the technology dependence affects the differential informativeness of R&D expenditures, and whether the above relationship intensifies after the accounting standards changed in 1998 towards restricting capitalization of R&D expenditures, whereby the expected relationships are confirmed under both contexts.

키워드

R&D Expenditures Capitalization informativeness