The Relationships between R&D Expenditure Manipulation and Tax Credit: The Case of Taiwanese IC Industry

• Main Authors: Yun-Chen Sun, 孫御宸
• Other Authors: Jenten Liu
• Format: Others
• Language: zh-TW
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/75598324096151377734

碩士 === 東吳大學 === 會計學系 === 98 === The purpose of this study is to explore whether firms has manipulation of R&D expenditure and its characteristics in IC industry in Taiwan, and to investigate the relationship between manipulation of R&D expenditure and tax credit. The empirical tests have been conducted using TEJ database for IC design, IC packaging and IC testing firms listed on the Taiwan Stock Exchange and GreTai Securities Market (over-the-counter, OTC) for fiscal years from 2000 to 2008. Our empirical study results indicate: 1). There has manipulation of R&D expenditure in IC design, IC packaging and IC testing industry. 2). The empirical results show that there is a positive relation between business cycle and manipulation of R&D expenditure in IC design industry. The relationship between free cash flow and manipulation of R&D expenditure is negative in IC design industry. 3). We find that manipulation of R&D expenditure is positively associated with the tax credit the firm obtained.