Research On The Influence Of Accounting Conservatism On R&D Investment

R&D activity as one of the important factors promoting the modern economy, increasingly becomes the fountain of the core competition ability of the enterprises, and plays an essential role for the enterprise’s survival and development, which becomes the source of the enterprise’s core competitive advantage. Even so, compared to foreign enterprises, the awareness of R&D in domestic enterprise is remarkably insufficient. Actually, R&D activities always face more serious adverse selection and moral hazard problems in our country, thus accounting conservatism becomes the effective mechanisms to reduce information asymmetry and alleviate the agency problem. Studies about the consequences of accounting conservatism economy has been a hot issue in the field of financial accounting academic research. This thesis basing on China existing companies’ system, using standardized research and empirical research method studies the effections of accounting conservatism for R&D. Furthermore, the different influences of accounting conservation on R&D for the enterprises with different property rights have been compared.This thesis is divided into five parts. Chapter one, the introduction introduces the research background, research significance and purpose, and research progress both at domestic and abroad. Chapter two, the related concepts of the research objects and the theoretical basis of the influences of accounting conservatism on R&D are introduced, such as asymmetric information theory, principal-agent theory and signaling theory. Chapter three concerns the theory analysis and the research hypothesis, the overview of the present development situation of domestic R&D investment and the theoretical analysis of the influence of accounting conservatism on R&D investment are analyzed. Basing on the analyzing, two research hypothesis is raised. Chapter four focuses on the empirical research. Overall 2156 data was selected from 2009-2012 as the research sample, putting forward the empirical test for the assuming of third part. Finally, according to the analysis of the empirical test results, the part five concludes: (1) the level of accounting conservatism and R&D investment has significant negative correlation; (2) the nature of state-owned enterprises will weaken the negative correlation between accounting conservatism and R&D investment.Innovation and Features:1. So far, few reports accounting conservatism as one of the internal governance mechanism to study its impact on R&D, because studies of the influence factors of R&D mainly concentrated in the enterprise scale, executive incentive, government subsidies, etc. It is also related to the internal governance structure of the company, such as ownership structure, board structure, etc. So, there are rarely focus on the influence of accounting conservatism on R&D, and this will be an innovation.2. On the basis of theoretical analysis, different nature of the business property will be subdivision, and different influence of accounting conservatism on R&D will be compared under different property rights. Then we will clear to see the degree and the differentiation of the influence and make more targeted policy suggestions. Finally, a large sample of empirical data will be detected to enhance the support of this paper.