The measurement of the value of R&D expenditure

• Main Authors: JAW, YAW JUIN, 趙耀君
• Other Authors: SHEN DAH PAI
• Format: Others
• Language: zh-TW
• Published: 1997
• Online Access: http://ndltd.ncl.edu.tw/handle/82818214818859229005

碩士 === 東吳大學 === 會計學系 === 85 === This study examines whether reports accounting earnings reflect benefits from past research and development expenditures and uses the benefits, if any,to estimate the investment value of R& D. The issue is how to extract realize R&D benefits from income statement numbers. To the extent that market participants can determine realized benefits and expect these enefits to persist in the future, they will use accounting earnings numbers to value current R&D. This study uses cross-sectional data to estimate a recursive system of two equations: one for earnings and one for valuation. The coefficients derived from these two equations are then used to estimate the investment value of R&D. This system of equations assumes that past R&D generates earnings that create market value. The results from the earnings model indicate that reported earnings do reflect realized benefits from current R&D expenditures. The results from the valuation model indicate that incestors place a high value on current R&D investment. Finally, this study doesn''t provide significant evidence supporting the lag effect in the relation of earnings to R&D, but market value reflect past R&D investment.