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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)

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    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.

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    Paper provided by HAL in its series Post-Print with number hal-00690955.

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    Date of creation: 21 May 2012
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    Handle: RePEc:hal:journl:hal-00690955
    Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-00690955
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    1. 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.
    2. 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.
    3. 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.
    4. 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.
    5. Beatriz Garcia Osma & Steven Young, 2009. "R&D Expenditure and Earnings Targets," European Accounting Review, Taylor & Francis Journals, vol. 18(1), pages 7-32.
    6. 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.
    7. Anne Cazavan-Jeny & Thomas Jeanjean, 2004. "Pertinence de l'inscription à l'actif des frais de R1D : une étude empirique," Post-Print halshs-00593826, HAL.
    8. 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.
    9. 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.
    10. 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, revues.org, vol. 7(4), pages 87-106, December.
    11. 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.
    12. Degeorge, François & Patel, U & Zeckhauser, Richard, 1998. "Earnings Management to Exceed Thresholds," CEPR Discussion Papers 1790, C.E.P.R. Discussion Papers.
    13. 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.
    14. 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, 06.
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