Accounting Conservatism and Corporate R &amp; D Investment: Evidence from Chinese Capital Market

DONG Zhu; ZHANG Xin

Volume 35 Issue 1

May 2021

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DONG Zhu, ZHANG Xin. Accounting Conservatism and Corporate R & D Investment: Evidence from Chinese Capital Market[J]. Journal of Guangdong University of Finance & Economics, 2020, 35(1): 101-112.

Citation:

DONG Zhu, ZHANG Xin. Accounting Conservatism and Corporate R & D Investment: Evidence from Chinese Capital Market[J]. Journal of Guangdong University of Finance & Economics, 2020, 35(1): 101-112.

DONG Zhu, ZHANG Xin. Accounting Conservatism and Corporate R & D Investment: Evidence from Chinese Capital Market[J]. Journal of Guangdong University of Finance & Economics, 2020, 35(1): 101-112.

Citation:

DONG Zhu, ZHANG Xin. Accounting Conservatism and Corporate R & D Investment: Evidence from Chinese Capital Market[J]. Journal of Guangdong University of Finance & Economics, 2020, 35(1): 101-112.

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Accounting Conservatism and Corporate R & D Investment: Evidence from Chinese Capital Market

DONG Zhu,
ZHANG Xin

School of Business, Jilin University, Changchun 130012, China

Received Date: 2019-09-21
Available Online: 2021-05-15
Publish Date: 2020-01-28

Abstract

Abstract

Using the data of Shanghai and Shenzhen A-share listed companies from 2007 to 2017, this paper investigates the impact of accounting conservatism on R & D investment, and further tests the role played by ownership, heterogeneous institutional investors and information transparency. The results show that the higher the accounting conservatism is, the less the R & D investment of enterprises is, indicating that accounting conservatism will restrain the R & D investment of enterprises. It is found through further tests based on the nature of ownership that accounting conservatism has a stronger inhibitory effect on R & D investment in non-state-owned enterprises than that in state-owned enterprises; while stable institutional investors and the improvement of enterprise information transparency can alleviate the negative impact of accounting conservatism on R & D investment. This study is of theoretically and practically significance for comprehensive understanding of the impact of accounting conservatism on enterprise investment activities and how to reduce the negative effect of accounting conservatism on R & D investment.
- accounting conservatism,
- R & D investment,
- ownership,
- heterogeneous institutional investors,
- information transparency,
- state-owned enterprise,
- non-state-owned enterprise

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References(38)

References

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