The impact of value-relevant accounting rules on innovative activities

Hsuan Chu Lin, Chin Chen Chien, She Chih Chiu

研究成果: Article

3 引文 斯高帕斯(Scopus)

摘要

The purpose of this paper is to examine the impact of value-relevant accounting rules on corporate innovative activities. Using US data from 1972 to 2012, we find that value-relevant accounting rules help innovative companies to reduce R&D funding gaps, which is conducive to companies' innovative activities and potential long-term benefits. However, a higher risk premium is required by shareholders of innovative companies. Additionally, we find not only that R&D spending is more sensitive to future earnings variability as compared to that occurring commercial intellectual properties and physical assets, but we also find that managers contracted with long-term compensation plans have greater incentives to engage in innovative activities when value-relevant accounting rules set in. Overall, we provide evidence on alleviation of information asymmetry between innovative companies and their lenders when accounting information is more value relevant.

原文English
頁(從 - 到)872-886
頁數15
期刊R and D Management
46
發行號5
DOIs
出版狀態Published - 2016 十一月 1

    指紋

All Science Journal Classification (ASJC) codes

  • Business and International Management
  • Business, Management and Accounting(all)
  • Strategy and Management
  • Management of Technology and Innovation

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