The Research On The Usefulness Of The Capitalization Of R&D Information

At the era of knowledge and economy, R&D activity is an important means for a country to achieve its autonomous innovation, and also for an enterprise to maintain its core competence, especially for high-tech enterprises. The accounting policy of capitalize R&D increases the reliability, relevance, prudence of accounting information, and improve the situation of cost income ratio. However, the specific implementation of the policy needs highly subjective and professional ability to judge which reduces its original purpose. Also whether the R&D policy reasonable and the level of quality of the accounting information is high enough directly affects the management philosophy.Therefore, the research of the usefulness in R&D expenditures has important theoretical and practical significance for the promotion of the development of high-tech enterprises. This paper firstly verifies the impact of the R&D capitalization on accounting information quality from the perspective of earnings management,secondly, this paper study the market reaction of R&D capitalization through the study of the signals transferred by the R&D capitalization and their impact on investors and the economic consequences of decisions, to exam the usefulness of R&D capitalization. The results show that enterprises don't manage earnings by R&D capitalization;the market absorbs R&D capitalization information sufficiently;and R&D capitalization has raised the pertinence of stock returns or stock price and current accounting earnings, but has not affected the pertinence of the stock returns or stock price and future accounting earnings; the R&D capitalization in 2009 is more useful than that in 2008, which shows that the informativeness of our R&D capitalization increases every year; for the information technology industry, electronics manufacturing, pharmaceutical manufacturing and machinery manufacturing whose R&D intensity and capitalization is of the relatively high, the stock market can have a very good absorption of the impact the R&D capitalization has on the accounting surplus information. According to the conclusions the whole article, the author gives suggestions from the aspects of improving the disclosure of R&D expenditure information and R&D expenditures in accounting policies , also the promoting the quality of the accounting staff and the investor.