IDEAS home Printed from
   My bibliography  Save this paper

Le Comportement Myopique D'Investissement En R&D : Une Realite En France ?


  • Guillaume Dumas

    () (LGCO - Laboratoire Gouvernance et Contrôle Organisationnel - UPS - Université Paul Sabatier - Toulouse 3)


The aim of this research is to determine the extent to which French managers assume a myopic investment behavior in R&D; defined as the intentional adjustment of long-term investment in order to achieve short-term earnings targets. Therefore, this research raises the question: to what extent the decrease of accounting discretion in R&D asset recognition (upon adoption of IFRS) influence the real earnings management based on the R&D investment? The results show that managers intentionally decrease R&D investments to achieve earnings profits and to a lesser extent last year's earnings level. The R&D investment's reduction in order to achieve profits is slightly exacerbated under the IFRS.

Suggested Citation

  • Guillaume Dumas, 2012. "Le Comportement Myopique D'Investissement En R&D : Une Realite En France ?," Post-Print hal-00690955, HAL.
  • Handle: RePEc:hal:journl:hal-00690955
    Note: View the original document on HAL open archive server:

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Michael E. Porter, 1992. "Capital Choices: Changing The Way America Invests In Industry," Journal of Applied Corporate Finance, Morgan Stanley, vol. 5(2), pages 4-16.
    2. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
    3. Anne Cazavan-Jeny & Thomas Jeanjean, 2005. "Pertinence de l’inscription à l’actif des frais de R&D : une étude empirique," Comptabilité - Contrôle - Audit, Association francophone de comptabilité, vol. 11(1), pages 5-21.
    4. Yuan Ding & Hervé Stolowy & Michel Tenenhaus, 2004. "Les déterminants de la stratégie de « capitalisation » des frais de recherche et développement en France," Revue Finance Contrôle Stratégie,, vol. 7(4), pages 87-106, December.
    5. repec:bla:joares:v:36:y:1998:i::p:161-191 is not listed on IDEAS
    6. Beatriz Garcia Osma & Steven Young, 2009. "R&D Expenditure and Earnings Targets," European Accounting Review, Taylor & Francis Journals, vol. 18(1), pages 7-32.
    7. Dennis R. Oswald, 2008. "The Determinants and Value Relevance of the Choice of Accounting for Research and Development Expenditures in the United Kingdom," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 35(1-2), pages 1-24.
    8. Cazavan-Jeny, Anne & Jeanjean, Thomas & Joos, Peter, 2011. "Accounting choice and future performance: The case of R&D accounting in France," Journal of Accounting and Public Policy, Elsevier, vol. 30(2), pages 145-165, March.
    9. Paul M. Healy, 2002. "R&D Accounting and the Tradeoff Between Relevance and Objectivity," Journal of Accounting Research, Wiley Blackwell, vol. 40(3), pages 677-710, June.
    10. Burgstahler, David & Dichev, Ilia, 1997. "Earnings management to avoid earnings decreases and losses," Journal of Accounting and Economics, Elsevier, vol. 24(1), pages 99-126, December.
    11. Anne Cazavan-Jeny & Thomas Jeanjean, 2006. "The negative impact of R&D capitalization: A value relevance approach," European Accounting Review, Taylor & Francis Journals, vol. 15(1), pages 37-61.
    12. Degeorge, Francois & Patel, Jayendu & Zeckhauser, Richard, 1999. "Earnings Management to Exceed Thresholds," The Journal of Business, University of Chicago Press, vol. 72(1), pages 1-33, January.
    13. Bange, Mary M. & De Bondt, Werner F. M., 1998. "R&D budgets and corporate earnings targets," Journal of Corporate Finance, Elsevier, vol. 4(2), pages 153-184, June.
    14. Markarian, Garen & Pozza, Lorenzo & Prencipe, Annalisa, 2008. "Capitalization of R&D costs and earnings management: Evidence from Italian listed companies," The International Journal of Accounting, Elsevier, vol. 43(3), pages 246-267, September.
    15. Lev, Baruch & Sougiannis, Theodore, 1996. "The capitalization, amortization, and value-relevance of R&D," Journal of Accounting and Economics, Elsevier, vol. 21(1), pages 107-138, February.
    Full references (including those not matched with items on IDEAS)


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. repec:hur:ijaraf:v:4:y:2014:i:2:p:85-97 is not listed on IDEAS
    2. Rihab Guidara & Younes Boujelbene, 2014. "R&D-Based Earnings Management and Accounting Performance Motivation," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 4(2), pages 81-93, April.

    More about this item


    Myopic Investment Behavior; Earnings Management; Accounting Standards.; Comportement myopique d'investissement; R&D; gestion des résultats; norme comptable.;

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:journl:hal-00690955. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (CCSD). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.