Research On The Implicit Choice Of R&D Disclosure Policy And Market Recognition

Nowadays, global economy is moving towards knowledge-based economy from industrial economy. Because of the development of information and communication technology, market competition has turned out to be the competition of technology and knowledge innovation. Market competitors with advanced productive forces own the driving force of sustainable innovation, so they have the potential to expand the market and consolidate the monopoly position. Therefore, for a business, an area, even the long-term development of a country, R&D are essential.At present, China’s economic is developing rapidly, and facing economic structural adjustment. The essence of Economic restructuring is technological innovation, so it is necessarily to increase innovation investment. Since2000, China has continued to strengthen the intensity of R&D investment, and the total amount of R&D investment of the society as a whole is increasing year by year. But from the view of intensity of R&D expenditure, at the beginning of this century, China’s R&D/GDP growth is slow. In2010, China’s R&D expenditure of funds intensity was1.76%, which is ahead of other developing countries. But compared with developed countries, the gap is still large. R&D expenditure intensity of developed countries is more than2%. A high level of R&D expenditure ensures a higher innovative and far ahead in the economic area.Information disclosure as a kind of signal mechanism plays a very important role in the capital markets, and it also connected the enterprises and investors. Corporate information disclosure system experienced a long-term evolution, mainly through voluntary information disclosure, mandatory information disclosure and the combination of voluntary and mandatory information disclosure system. The development of the information disclosure reflects the development process of the capital. It also shows that the information disclosure system is important to the capital markets. They find that the value of accounting information is declining, they think this is a result of the cost for R&D. The cost of R&D makes the annual the financial report not reflect the true and full value of intangible assets, which may lead to a decline in the value of the accounting profit. Chinese accounting information’s usefulness is in a significant decline, and they think the increase of R&D investment results this. Since domestic and foreign research attributed the decline of the value of accounting information to the processing of the cost for R&D, Chinese new standard requires a conditional capitalized of R&D. Does Chinese R&D disclosure improve the value of the company? Can Chinese R&D disclosure be recognized in market?The main content of this study is implicit choice of R&D disclosure policy and market recognition. The full text includes five chapters:Chapter Ⅰ Introduction. Clarify the importance of technological innovation on a country’s economic development. In China, R&D investment increased year by year, but the intensity of inputs is still below the average level of developed countries. Indicate the thesis research background and significance, research contents and methods as well as major contributions and the key issues to be resolved.Chapter Ⅱ Literature review and theoretical analysis on the choice of R&D disclosure policy, including three aspects, the first aspect defines R&D, the disclosure of R&D, the implicit choice and market recognition, the second aspect collates and summarizes the related literature, the third aspect clarifies relevant theory.Chapter Ⅲ Study design, including the institutional background and research hypotheses, data and samples, variable selection and model design. According to the analysis of the theory and institutional background, forms the hypothesis of this thesis, the degree of market recognition is:DR>CF>DE.Chapter Ⅳ Empirical test and analysis. In this thesis, the listed companies of IT industry as the research sample. The thesis examines the degree of market recognition of the three most important R&D disclosure.In the product market, the market acceptance of R&D disclosure of the DR>CF>DE, Support the hypothesis; but the three disclosure can’t be recognized in the stock market.Chapter Ⅴ Conclusion, limitation and policy recommendations. According to the results of this study, propose the following:1. Improve the R&D information disclosure measures.2. To strengthen securities market information environment.3. Improve the professional ability of investors.The majority of literature is more concerned about the listed companies’ disclosure of R&D expenditure. Many scholars have studied the issues related to the ratio of the disclosure of R&D expenditures or the amount of R&D expenditures and sales. However, these studies missed a very important aspect, that is, can the different R&D expenditure disclosure be accepted by the market and which disclosure can be recognized by the consumers and investors. This paper attempts to answer this fundamental question. This paper investigates the status of the R&D expenditures disclosure of listed companies of Chinese IT industry to fully understand the R&D expenditures information the user needs. At the same time, this paper tries to find out which disclosure of R&D expenditures can be recognized in order to provide reference for enterprises in the future to select R&D expenditure disclosure. Base on the analysis, this paper provides a proposal for listed companies to improve R&D expenditure disclosure and the accounting standards setting agency to perfect the new intangible asset criteriaForeign researchers have studies whether disclosure of R&D expenditure can be recognized by market, but Chinese researchers haven’t studies this topic from the perspective of the product and capital markets. This paper chooses static and dynamic indicators in capital market research in order to have a better understanding of the corporate disclosure of R&D expenditures. Based on this consideration, this paper studies the R&D expenditure disclosure from a new perspective. In addition to the new research perspective, this paper also makes some improvements on the data. The sample period is from2007to2010, the data is relatively new. This paper has an increase in the number of samples than previous studies. Previous studies mostly remain in the qualitative research stage of discussions, but this paper attempts to do some quantitative research for the disclosure of R&D expenditures to provide some reference to the relevant areas of research.