The Relationship between R&D Capitalization and Subsequent R&D Investment Decisions: the Monitoring Role of the Board of Directors

研發資本化與研發投資效率之關聯性研究：兼論董事會之監督角色

蔡柳卿(Liu-Ching Tsai) ； 楊朝旭(Chaur-Shiuh Young) ； 陳家慧(Chia-Hui Chen) ； 許慧雯(Hui-Wen Hsu)

《中華會計學刊》 Volume 10 Issue 2 (2014/12) Pp. 99-134

https://doi.org/10.6538/TAR.2014.1002.01

Abstracts

研發資本化的支持者一向認為，研發支出費用化將誘發短視的管理者藉由削減研發費用，以操縱短期利潤，導致研發投資不足的現象。然而，本研究認為研發資本化並非萬靈丹。使用2007年至2010年美國軟體業公司為樣本，本研究為首篇利用大樣本執行實證研究，提供證據指出研發資本化將導致後續研發之過度投資。此證據支持下列觀點：選擇研發支出資本化的管理者，基於聲譽考量，即使研發方案已經前景黯淡，寧願繼續投資也不願意報導研發資產減損，進而導致研發過度投資。此外，本研究進一步分析發現，有效的董事會監督可抑制前述管理者研發投資過度的行為。

Keywords

研發資本化 ； 投資效率 ； 董事會

Parallel abstracts

Proponents of the R&D capitalization method have long argued that expensing R&D incentivizes myopic managers to cut R&D to manage short-term profits, leading to underinvestment in R&D. However, we argue that R&D capitalization is not a panacea. Using a sample of U.S. software firms from 2007 to 2010, we document the first archival empirical evidence that R&D capitalization can lead to subsequent over-investment in R&D. This finding is consistent with the view that, to save their reputation, managers of R&D capitalizing firms are reluctant to report impairment of capitalized R&D. Consequently, capitalizing firms tend to continue those R&D projects with bleak prospects and thus over-invest in R&D. A further analysis indicates that effective monitoring from a firm's board of directors can discipline managers for overinvestment in R&D.

Parallel keywords

R&D capitalization ； investment efficiency ； board of directors

References

Abel, A., and J. Eberly. 2002. Investment and q with fixed costs: An empirical analysis.Working paper, Northwestern University

Bhattacharya, N., Y. Saito, R. Venkataraman, and J. J. Yu. 2013. R&D reporting rule andfirm efficiency. Working paper, Southern Methodist University

Biederman, H. 2000."Saving Face" is not facing up to reality. Financial Times(Aug 29):12-13

Fedyk, T., and Z. Singer. 2010. IPO valuation and items manipulated by IPO firms.Working paper, Arizona State University and McGill University.

Grinstein, Y., and E. Tolkowsky. 2004. The role of the board of directors in the capital budgeting process-evidence from S&P 500 firms. Working paper, Cornell University.