Value relevance of discretionary R&D capitalization.
Date of Issue2003
College of Business (Nanyang Business School)
this study examines the value-relevance of capitalized R&D in a discretionary R&D expensing and capitalization environment. The study posits that the R&D capitalized during a fiscal year is value relevant. Additionally, its value relevance is enhanced when investors perceive that the firm is capitalizing R&D for efficiency-based reasons rather than for opportunistic reasons.
Nanyang Technological University