Research On The Market Reaction To The Capitalization Of R&D Expenditure Based On The GEM Listed Companies

In 2017,China's innovation driven strategy outline was published,which made it clear that innovation should be the first driving force for development.R&D activities are the main means to achieve innovation in all countries.As the main body of R&D activities,R&D innovation is the source of the core competitiveness of enterprises.In 2006 the newly revised accounting standards of enterprises R&D expenditures by all the original treatment costs to allow capital processing conditions in the development phase,the "select" accounting treatment,stakeholder thinking:how to evaluate the choice of R&D investment supporting the market value of the enterprise?Is the information transmitted to the market true based on the performance of the enterprise?This can be attributed to the market reaction of capitalization of R&D expenditure.Gem is known as the cradle of hi-tech enterprises.Its growth and R&D activities are frequent.Therefore,it is of great significance to study the market reaction of R&D expenditure capitalization of GEM companies.This paper first analyzes the accounting information confirmation and disclosure of the R&D expenditure capitalization,then analyzes the motivation of enterprises' R&D expenditure capitalization,and finally studies the market reaction after the capitalization of R&D expenditures.Research results show that the GEM listed companies in China R&D expenditures of accounting information disclosure is the implementation of the new accounting standards,form a more standardized and unified,the content is more rich and specific time on more frequent and continuous motivation;R&D expenditures in the three traditional hypothesis only political cost hypothesis has been verified;regression the short-term market reaction and found the balance of corporate capital spending is not transferred to the intangible assets of the shares are related,but not significant;return to long-term market reaction to capital of R&D expenditure is not transferred to the balance of enterprise intangible assets and the stock returns are negatively correlated,but the capitalization of R&D expenditures into intangible the amount of the asset and stock returns are positively related;there is a significant positive correlation between R&D expenditures and enterprise performance.At the end of this paper,the corresponding countermeasures and suggestions are put forward according to the research conclusions,and the shortcomings of the research are summarized,and the follow-up research is prospected.