A STUDY ON R&D EXPENDITURE AND CORPORATE VALUE OF CHINESE HIGH-TECH INDUSTRY

Guan-Chih Chen and Shuling Tsao
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Guan-Chih Chen: Department of Insurance and Finance, National Taichung University of Science and Technology, Taichung, Taiwan. Author-Name: LI, Hexuan
Shuling Tsao: Department of International Business Administration, Wenzao Ursuline University of Languages, Kaohsiung Taiwan.

Studii Financiare (Financial Studies), 2019, vol. 23, issue 4, 39-51

Abstract: This paper examines the impact of research and development (R&D) expenditure, R&D capitalized expenditure and expensed expenditure on the corporate value. Through the exposition of R&D expenditure affect relevance of corporate value after the Chinese New Accounting Standards, it can be found that R&D expenditure information has a positive effect on share price. The disclosure of information on R&D expenditure has a positive relevance to corporate value means that the disclosure of R&D expenditure information can improve the value relevance of accounting information. Investors give positive value to the R&D capitalized and expensed expenditure, but R&D capitalized expenditure has a greater effect on investors than R&D expensed expenditure. At the same time, the normative degree of R&D expenditure disclosure has a significant positive effect on the stock price, which shows that the disclosure of R&D expenditure information can improve the value relevance of accounting information.

Keywords: Chinese High-tech industry; R&D capitalized expenditure; corporate value (search for similar items in EconPapers)
JEL-codes: C33 G30 M41 O14 (search for similar items in EconPapers)
Date: 2019
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