Capitalization of R&D and the Informativeness of Stock Prices

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R&D Expenditure and Earnings Targets (2009, unknown): “6The vector of explanatory variables in the first-stage probit regression modelling the decision to expense R&D is based on Oswald and Zarowin (2007a).”
The Impact of Mandatory IFRS Adoption on Equity Valuation of Accounting Numbers for Security Investors in the EU (2010, background): “Prior studies use valuation models and find that R&D expenditures are value relevant and have significant future economic benefits (Ballester et al., 2003; Oswald and Zarowin, 2007).”
The Adoption of IFRS 3: The Effects of Managerial Discretion and Stock Market Reactions (2011, background): “4In a similar vein, Oswald and Zarowin (2007) find that the firm’s choice to capitalize R&D investments instead of expensing them straight away is associated with greater stock price informativeness.”
The effects of voluntary disclosure and dividend propensity on prices leading earnings (2009, methodology): “…e.g. Banghøj and Plenborg, 2008; Dhiensiri et al., 2005; Ettredge et al., 2005; Gelb and Zarowin, 2002; Hanlon et al., 2007; Hussainey et al., 2003; Lee et al., 2007; Lundholm and Myers, 2002; Orpurt and Zang, 2006; Oswald and Zarowin, 2007; Schleicher et al., 2007 and Tucker and Zarowin, 2006.”