Missing R&D

• 成果类型: Article
• 署名作者: Koh, Ping-Sheng; Reeb, David M.
• 署名单位: Hong Kong University of Science & Technology; National University of Singapore
• 刊物名称: JOURNAL OF ACCOUNTING & ECONOMICS
• ISSN/ISSBN: 0165-4101
• DOI: 10.1016/j.jacceco.2015.03.004
• 发表日期: 2015
• 关键词: development investment; market value; patents; disclosure; INFORMATION; TECHNOLOGY; INNOVATION; earnings

摘要

We investigate whether missing R&D expenditures in financial statements indicates a lack of innovation activity. Patent records reveal that 10.5% of missing R&D firms file and receive patents, which is 14 times greater than zero R&D firms. Pseudo-Blank R&D firms (missing R&D firms with patent activity) demonstrate patent filings analogous to the bottom 90-95% of the positive R&D population. Multivariate difference-in-differences tests indicate that Pseudo-Blank R&D firms are more likely to report R&D after an exogenous auditor change. Finally, we provide simple Monte Carlo simulations to evaluate different methods to handle missing R&D in empirical research. (C) 2015 Elsevier B.V. All rights reserved.