Research On Pharmaceutical Manufacturing R & D Expenditure And Earnings Management

At present,with the continuous development of economy,the economic and social complexity of our country is increasing day by day.The external environment faced by enterprises is also becoming more and more complicated.In order to achieve long-term development,enterprises must constantly improve their own comprehensive strength,and how to achieve the comprehensive strength of enterprises needs to be paid attention to in daily operation.In order to improve the core competitiveness and competitive advantage of enterprises,especially for pharmaceutical enterprises and other high-tech enterprises,R &D activities are often vigorously carried out,resulting in a surge in R &D expenditure.China issued new accounting standards in 2006.The new standard uses conditional capitalization as the accounting principle of R &D expenditure activities,which is conducive to improving the relevance of accounting information.However,the new guidelines on the capitalization of R &D expenditure are principled,which provides space for the management of earnings management.We find that some listed companies have adjusted their profit information by means of artificial manipulation of capitalization rate to deal with the fuzziness of R &D expenditure under the new criteria.As one of the industries with high R &D expenditure,pharmaceutical companies have a long R &D cycle,high R &D uncertainty,low market acceptance after drug listing,and unclear drug re evaluation.These industry characteristics make the company's demand for earnings management greater.Higher level of earnings management will damage the vital interests of stakeholders,and is not conducive to the healthy development of economic society.In conclusion,from the perspective of earnings management,it is of great theoretical and practical significance to study the treatment of R &D expenditure in the pharmaceutical industry.The purpose of this study is to effectively identify the earnings management behavior of pharmaceutical enterprises through R &D expenditure accounting selection,and provide suggestions for the disclosure of R &D expenditure information.This paper takes Haizheng pharmaceutical,a representative of pharmaceutical manufacturing industry,as an example,and studies its R &D expenditure business activities by empirical identification method,then uses econometric model to measure the degree of earnings management of Haizheng pharmaceutical industry.This paper compares the disclosure information of R &D expenditure and accounting prudence to determine and identify earnings management.It is found that in the face of losses and huge losses,listed companies are motivated to use R &D expenditure accounting to choose earnings management.This kind of earnings management behavior can optimize the profit level of enterprises to a certain extent.According to the above situation,this paper puts forward corresponding countermeasures and suggestions.As China's social economy is in the process of reform and development,the future development of Chinese enterprises is also facing transformation.Correspondingly,as a high-tech enterprise,pharmaceutical manufacturing industry has a longer R &D cycle than other industries,and the uncertainty of the results of its R &D activities is higher,so the disclosure of R &D expenditure related information has a greater impact on pharmaceutical enterprises than other industries Louder.However,based on the principle orientation of R &D expenditure in China's accounting standards,the corresponding accounting treatment of R &D expenditure in Chinese pharmaceutical enterprises is not standardized,and there are some problems in its accounting treatment.However,incomplete disclosure of R &D expenditure related information in pharmaceutical manufacturing industry is not conducive to external information users' real understanding of the operation of the enterprise,is not conducive to improving the corporate image,and is not conducive to the stable and healthy development of China's economic and social.Therefore,the research of R &D expenditure in pharmaceutical industry can promote the development of pharmaceutical manufacturing industry,and strengthen the corresponding norms of R &D expenditure accounting in China.The company standardizes the accounting treatment of R &D expenditure and improves the quality of information disclosure,so as to improve the comprehensive competitiveness of the pharmaceutical manufacturing industry and promote the healthy development of China's economy.