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Value-Relevance of Research and Development Expenses and Intangible Assets: Is It a Matter of Accounting Choice?
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Publication Year
2021-04
Journal
경영교육연구
Publisher
한국경영교육학회
Citation
경영교육연구, Vol.36 No.2, pp.267-292
Keyword
가치관련성국제회계기준무형자산연구개발비연구개발집중도회계기준회계선택Accounting ChoiceAccounting StandardsIFRSIntangible AssetsR&D ExpenseR&D IntensityValue-Relevance
Abstract
[Purpose]The purpose of this study is to examine whether R&D expenditure and the intangible assets of companies can provide value-relevant information to the capital market, and to examine whether the value-relevance of R&D is different depending on the company’s accounting choice. <br>[Methodology]Using two different regression equations, stock return and operating income are regressed on R&D intensity, intangible assets, and other control variables. <br>[Findings]The results show that both R&D intensity and intangible assets are positively related to stock return and operating income. These findings indicate that R&D expenditures present future economic value, and therefore, should not be treated like other expenses. In addition, this study finds that the value-relevance of R&D expense exists both in DI- and DS-adopting companies; therefore, it is concluded that the value-relevance of R&D expenditures is not a matter of accounting choice. <br>[Implications]This study provides empirical evidence of the financial value-relevance of R&D expenditure and intangible assets using recent data across industries and countries. These results can be used to develop novel systems that can appropriately value, measure, and report R&D expenses and intangible assets. The results also contribute to the consideration of an accounting method that accepts R&D and intangibles as value-creating assets.
ISSN
1598-8651
Language
Eng
URI
https://aurora.ajou.ac.kr/handle/2018.oak/35393
DOI
https://doi.org/10.23839/kabe.2021.36.2.267
Type
Article
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Yoon, Sora윤소라
Department of Business Administration
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