Font Size: a A A

An Empirical Study On Capitalization Of R&D Expenditure's Effect On Companies' Technological Innovation

Posted on:2011-10-11Degree:MasterType:Thesis
Country:ChinaCandidate:Y ZouFull Text:PDF
GTID:2189360305465622Subject:Business management
Abstract/Summary:PDF Full Text Request
Technological innovation is the fundamental source of achieving scientific and technological progress and economic growth, which is also the competitiveness of enterprises' core competencies. R & D is the most important form of technological innovation. Enterprise now has become the main body of R & D investment. So effective selection and management of research activities and projects, appropriate assessment of the R & D directly affect the enterprise's economic growth and competitiveness.It is very important to make new policy to promote technological innovation, and the new guidelines' point is starting from the accounting support level to encourage business R & D activities. This paper tested the effect of the new guidelines using the theoretical analysis and empirical. First, the paper analyzed the accounting issues which arise from the investment to result of technological innovation. Then it elaborated the policy of the United States and other economically developed countries, summing up a few useful suggestions to the accounting treatment of R & D spending. The second part showed the expectation of "enterprise accounting guidelines No.6-Intangible Assets". In order to test the effect of the R & D expenditure capitalization, I took the listed companies as sample. So this paper collected a large number of annual reports of listed companies, to obtain financial data such as intangible assets, research and development expenses. Finally, it used the fuzzy mathematics method to process data to compare the change before and after capitalization, then make data interpretation and explanation, and analyzed the underlying causes.Empirical research shows that R & D expenditure capitalization promoted the passion for innovation and improved the ability of technological innovation of enterprises (listed company), but the effect did not pass the significance test. Therefore, the paper put forth some measures: first, introduce real options to quantify R & D risk; second, on the division of research and development stage, with reference to international accounting standards and foreign state approach, put forward more detailed rules and clear regulations, third, propose to foster a sense of responsibility to overcome subjectivity.
Keywords/Search Tags:Intangibles assets, Technical innovation, R&D expenditure, Capitalization
PDF Full Text Request
Related items