Value Relevance of Accounting Earnings and Book Value According to R&D Expenditure
Asian Tax Journal Vol. 8 No. 2 (2007), pp. 9-29
Abstract
We empirically examine the impact of R&D expenditure on the value relevance of accounting earnings and book value in the KOSDAQ markets. An simple liner regression and piece－wise linear regression are applied to across sub samples in order to investigate value relevance of accounting earnings/book value according to the level of R&D expenditure. First time We divide all Samples into 2 equal R&D expenditure groups, and then 3 equal R&D expenditure groups.The empirical results show that as the level of R&D expenditure decrease, book value have relevance with equity value. This also suggests grouping criterion can contribute to finding value impact of firm size and debt ratio.<Key words> R&D Expenditure, Accounting Earnings, Book Value, Value Relevance, Option based Valuation Model
Keywords
- R&D Expenditure
- Accounting Earnings
- Book Value
- Value Relevance
- Option based Valuation Model
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