R&D expenditure and valuation of loss firm: Taiwan and USA technology industry

• Main Authors: Wen-Shiuan Shiu, 許彣萱
• Other Authors: Feng-Li Lin
• Format: Others
• Language: zh-TW
• Published: 2011
• Online Access: http://ndltd.ncl.edu.tw/handle/46548077548731144339

碩士 === 朝陽科技大學 === 會計所 === 99 === Many companies have encountered losses, resulting from highly competition for global economy era and international market. Assessment of such company is to be very careful. Companies rely on research and development activities to maintain their competition. We focus on those loss firms which are negative earnings and have research and development expense. We compare with United States of America and Taiwan which loss firms of Information Technology Industry. Whether research and development expense affect the value of loss firm. We find that research and development expense help to explain the value of loss firms and reduce the negative relationship between current profitability and firm value. And also reduce the positive relationship between book value of ordinary equity and firm value. Those results are the same on both USA and Taiwan. The investors will think R&D expenditure as intangible assets to explain the firm value.