DIRECT AND INDIRECT VALUE RELEVANCE OF R&D CAPITALIZATION
Küçük Resim Yok
Tarih
2020
Yazarlar
Dergi Başlığı
Dergi ISSN
Cilt Başlığı
Yayıncı
Erişim Hakkı
info:eu-repo/semantics/openAccess
Özet
The accounting treatment of R&D investments has been an open and contentious discussion as certainaccounting regimes eliminate capitalizing and require immediate expensing while capitalization of R&Dinvestments satisfying all necessary criteria is mandatory in IAS 38. By analysing a sample of listed firmson Borsa Istanbul over 2009-2018, we shed light on the impact of capitalized R&D investments on i)market values, and ii) the value relevance of book value of equity and earnings. We define the former(latter) as the direct (indirect) value relevance. By revealing a significantly positive association betweencapitalized R&D investments and market values, we conclude that capitalized R&D investments aredirectly value relevant. Furthermore, the value relevance of earnings (book value of equity) increases(remains unchanged) as capitalized R&D investments increase. These outcomes are consistent with ourexpectations and the outcome for earnings provides evidence for the indirect value relevance ofcapitalized R&D investments.
Açıklama
Anahtar Kelimeler
Kaynak
Istanbul Ticaret Üniversitesi Sosyal Bilimler Dergisi
WoS Q Değeri
Scopus Q Değeri
Cilt
19
Sayı
37
