| Summary: | 碩士 === 輔仁大學 === 會計學系碩士班 === 92 === As the economic environment changing, corporations pay more and more attention to the R&D investments in order to maintain their competition advantage. However R&D investments will benefit the company in the future. So R&D investment should be one kind of assets. But current GAAP mandates the full expensing of R&D in financial statement, unless in some condition. So the accounting information is unable to express the economic facts of corporations. The first purpose of this study is to estimate the relation between R&D expenditures and subsequent earnings. This study uses Almon lag procedure to estimate the relation between earnings and R&D series. In past studies, researchers usually use two variables version (book value and abnormal earnings) Feltham and Ohlson model, but there is another variable that presents another relevant information in the model. The two-variable model maybe has problem of omitting variables, so the second purpose of this study is to find the third variable of the model. This study chooses “the growth of total factors’ productivities” as the third variable and uses R&D expenditures and R&D capital respectively to compute the same variable. Finally, we ultilize the three-variable version Feltham and Ohlson model to build an R&D expensing model and a R&D capitalizing model. The third purpose of the study is to find out some evidence to prove that the R&D capitalizing model is better than the R&D expensing model. Data collection period for this study is ten years starting from 1993 and the samples include all listed and OTC-listed corporations.
The empirical results of the study are as follows：1.the R&D benefits last , on average, for five years; 2. the earnings contribution of the growth of total factors’ productivities variable which is computed by using R&D capital is significantly positive in the capitalizing model; 3.the R&D capitalizing model can explain stock price more than the R&D expending model; 4.when R&D expenditures are capitalized, the book value will unbias to the stock price and the persistence of the earnings will be longer; 5.the earnings contribution of the growth of total factors’ productivities has positive relation with stock price; 6.if the corporation’s R&D intensity is large, the accounting numbers of capitalizing R&D expenditures will bring better results in evaluating stock price.
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