R&D Accounting and the Tradeoff Between Relevance and Objectivity

By Paul M. Healy, Stewart C. Myers, C. Howe. 2002

196 citations recorded by the source corpus.

Subfields: Accounting, Finance, Management Science and Operations Research

View Paper: https://www.semanticscholar.org/paper/93e3a9830529677abbca6b33ab5a5f3959e2d762

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

In Finance

In Management Science and Operations Research

Citations in the corpus

Conditional and Unconditional Conservatism:Concepts and Modeling (2005, methodology): “Studies using simulation for much the same reason as we do include Healy et al. (2002), who examine the effect of alternative accounting treatments for R&D, and Givoly et al. (2004), who examine the effect of aggregation of shocks on asymmetry.”
The deteriorating usefulness of financial report information and how to reverse it (2018, background): “In summary, we find that R&D capitalization has information value, confirming Healy et al.’s (2002) simulation analysis.”
R&D Reporting Biases and Their Consequences (2005, unknown): “This is consistent with evidence provided by Lev et al (2002) and Healy et al (2002).”
Capitalization of R&D and the Informativeness of Stock Prices (2007, methodology): “Lev and Sougiannis (1996), Chan et al. (2001), Healy et al. (2002), Lev et al. (2002), Chambers et al. (2003) and Monahan (2005) examine the value-relevance of capitalized R&D for US firms, and universally find that the stock market treats R&D as an asset.”
What financial and non‐financial information on intangibles is value‐relevant? A review of the evidence (2008, unknown): “As a result, Healy et al. (2002) are able to examine the value-relevance of R&D accounted for in different ways under GAAP, as well as the effects of economic uncertainty and management discretion.”
Understanding Earnings Quality: A Review of the Proxies, Their Determinants and Their Consequences (2010, background): “The small number of papers published after the mid-1970s either use simulations (Dharan, 1987; Healy et al., 2002) or examine specific accounting methods in specific settings or for specific samples allowing them to overcome the research design issues (Loudder and Behn, 1995; Lev and Sougiannis,…”
The negative impact of R&D capitalization: A value relevance approach (2006, background): “This question is not as trivial as might appear at first sight, due to the trade-off between relevance and reliability in the case of R&D capitalization (Healy et al., 2002).”
Relative Value Relevance of R&D Reporting: An International Comparison (2002, unknown): “US-based studies address this issue by comparing the simulated value relevance of capitalization versus expense of R&D costs for the same set of firms (Horwitz and Zhao, 1997; Chambers et al., 1998; Healy et al., 1999).”
Information Asymmetry, Corporate Disclosure and the Capital Markets: A Review of the Empirical Disclosure Literature (2001, unknown): “Finally, Healy et al. (1999a) find that firms with increased analyst ratings of disclosures have an abnormally high frequency of subsequent public debt offers.”
Capital Markets Research in Accounting (2001, methodology): “Return predictability using multivariate indicators of mispricing. Ou and Penman (1989a, b) use a composite earnings change probability measure called Pr. They estimate the Prmeasure from a statistical data reduction analysis using a variety of financial ratios. The Pr measure indicates the likeliho”