GOUVERNEMENT D'ENTREPRISE ET CHOIX DU MODE DE COMPTABILISATION DES INVESTISSEMENTS EN R&D: CAS DES ENTREPRISES FRANÇAISES COTÉES

Samah Rebai Azouz ()
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Samah Rebai Azouz: Laboratoire R.E.P.O.N.S.E - URCA - Université de Reims Champagne-Ardenne, IHEC - IHEC de Sfax

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Abstract: CEOs of French companies must choose between capitalizing R&D as an asset on the balance sheet, or showing it as an expense on the income statement. Whether they opt for one or the other reflects two managerial strategies which are different but not mutually exclusive - namely, to disseminate more information on R&D investment and/or to manage earnings. That choice is, however, constrained because of the presence of governance mechanisms. This study uses the methodology of three-stage regression analyses to control for endogeneity among earnings management, disclosure index, and accounting method for R&D investment. The results of analyses show that the decision to capitalize R&D or not depends on the effectiveness of corporate governance control mechanisms. They also reveal that R&D capitalization leads to an improvement of the information disclosure index as regards R&D policy, but also allows for earnings to be managed downwards.

Keywords: accounting choices; disclosure index; earning management; corporate governance.; R&D; choix comptables; indice de divulgation; gestion des résultats; gouvernement des entreprises. (search for similar items in EconPapers)
Date: 2013-05-31
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Published in Comptabilité sans Frontières..The French Connection, May 2013, France. pp.cd-rom

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