The Library
International financial reporting standards and the value relevance of R&D expenditures : pre and post IFRS analysis
Tools
Tools
Tools
Shah, Syed Zulfiqar Ali, Liang, Shuang and Akbar, Saeed (2013) International financial reporting standards and the value relevance of R&D expenditures : pre and post IFRS analysis. International Review of Financial Analysis, Volume 30 . pp. 158-169. doi:10.1016/j.irfa.2013.08.001 ISSN 1057-5219.
Research output not available from this repository.
Request-a-Copy directly from author or use local Library Get it For Me service.
Official URL: http://dx.doi.org/10.1016/j.irfa.2013.08.001
Abstract
This study examines the value relevance of research and development (R&D) expenditures in the pre and post International Financial Reporting Standards (IFRS) periods in the UK. It also examines firm size and sector-based differences in the value relevance of R&D during the sample period between 2001 and 2011. The results indicate that capitalized R&D has value relevance during the 11 years sample period. However, the value relevance of capitalized R&D does not appear to have improved in the post-IFRS period. Large firms present higher value relevance of capitalized R&D than small firms which suggest that firm size has significantly different valuation effects on the value relevance of R&D expenditures. Sectors, however, do not appear to present valuation differences across manufacturing and nonmanufacturing firms. The overall findings of this study report no difference in the value relevance of expensed R&D in the pre and post-IFRS periods; however, the value relevance of capitalized R&D appears to decrease from pre to post-IFRS period. We thus argue that these findings have implications for the regulators and accounting professionals.
| Item Type: | Journal Article | ||||
|---|---|---|---|---|---|
| Divisions: | Faculty of Social Sciences > Warwick Business School | ||||
| Journal or Publication Title: | International Review of Financial Analysis | ||||
| Publisher: | Elsevier BV | ||||
| ISSN: | 1057-5219 | ||||
| Official Date: | 2013 | ||||
| Dates: |
|
||||
| Volume: | Volume 30 | ||||
| Page Range: | pp. 158-169 | ||||
| DOI: | 10.1016/j.irfa.2013.08.001 | ||||
| Status: | Peer Reviewed | ||||
| Publication Status: | Published | ||||
| Access rights to Published version: | Restricted or Subscription Access |
Request changes or add full text files to a record
Repository staff actions (login required)
 |
View Item |
