Research On R&D Expenditure And Earnings Management Of Pharmaceutical Manufacturing Industry

At present,the increasingly fierce market competition leads to the complex and changeable external operating environment of enterprises,and the operating and profit pressure of these enterprises have got increased.How to reinforce the overall strength has become an important issue that enterprises must pay attention to.China has begun to implement the new accounting standards since 2007.The new standards have made the conditional capitalization as the accounting principle of R&D expenditure business,and this action is conducive to improve the relevance of accounting information.But during the implementation of the new standards,we found that part of the listed company,especially the pharmaceutical manufacturing industry listed companies adjust the profitable information by artificially controlling the capitalization rate and other measures,with regard to the ambiguity of new accounting standards for R&D expenditure accounting treatment.This not only affects the reliability of finacial information,but also makes it impossible for information users to judge the real operation of enterprises.Therefore,in the view of earnings management,it has strong theoretical and practical significance to study the abnormal performance of R&D expenditure accounting treatment of pharmaceutical manufacture enterprises.Based on the sufficient relevant references,this article defines earnings management behavior of enterprises as neutral.Taking A company which is typical in the pharmaceutical manufacturing industry as an example,on the basis of R&D expenditure business study,using empirical identification and applying the econometric model and certain empirical research methods to measure its degree of earnings management.First of all,review the research on R&D expenditure and earning management in domestic and foreign literature and sort out the related arguments.Then based on the theoretical analysis,describe accounting treatment policy of R&D in pharmaceutical manufacturing and summarize the present situation and existing problems of R&D expenditure and earnings management.Combined with the case of A company,use empirical identification method for financial judgment and apply the econometric model method and empirical research method to measure and obtain research conclusions,which means that A company does the earnings management by artificially adjusting R&D expenditure accounting.On the basis of empirical research,it is judged that the main motivation of adjusting A company to do the earnings management based on its financial data is debt contract,smooth income,capital market and so on.Finally summarize the enlightenment of capitalization of R&D expenditure and earnings management in pharmaceutical manufacturing industry and then put forward relevant policy suggestions.With China's supply-side structural reform and the steady progress of industrial 4.0,pharmaceutical manufacturing enterprises are facing greater development and transformation pressure.However,the incomplete disclosure of R&D expenditure information in pharmaceutical manufacturing industry is not conducive to improve corporate image.Therefore,the research of this paper is of great benefit for pharmaceutical manufacturing companies to standardize the accounting treatment of R&D expenditure,improve the quality of information disclosure,and ultimately enhance the comprehensive competitiveness of pharmaceutical manufacturing enterprises.