R&amp;D accounting treatment, firm performance, and market value: Biotech firms case study

Lee, Namryoung

doi:10.14254/2071-8330.2019/12-2/4

Cited by 7 publications

(4 citation statements)

References 37 publications

(47 reference statements)

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“…Studies by Isiker and Tas (2021), Wang et al (2021), Feito-Ruiz et al (2020, Marangu et al (2019), Heavilin and Songur (2019), Chang et al (2019), Lee (2019), Arulsulochana (2019), Khanal and Mishra (2017), Dedman et al (2017), De Ridder andBurnie (2016) and many others have also concluded a positive impact of BSA.…”

Section: Discussionmentioning

confidence: 92%

An event study analysis of the impact of bonus share announcements on Nifty 100 and Nifty Midcap 100 companies

Mahato

2022

IJABF

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This study examines how the large-cap and mid-cap firms listed on the National Stock Exchange responded to bonus share announcements between January 1, 2006, to September 30, 2022. The conventional event study approach has been utilized, along with the commonly used market model assessment of predicted returns to analyze 45 pure events during this period consisting of 20 events of large-cap and 25 events of midcap stocks. According to the analysis, stock values significantly changed around the time of occurrence. Announcements of stock dividends typically increase stock prices. The mean of average abnormal return around the event for Nifty Midcap 100 indexed companies (0.2087) is higher than that for Nifty 100 indexed companies (0.1446), although the difference is insignificant. The study also shows that the cumulative average abnormal return for Nifty Midcap 100 indexed companies (6.472) is higher than that for Nifty 100 indexed companies (4.483) during the event period.

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Section: Discussionmentioning

confidence: 92%

An event study analysis of the impact of bonus share announcements on Nifty 100 and Nifty Midcap 100 companies

Mahato

2022

IJABF

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“…In case of Korean biotech firms, capitalized R&D has a higher value relevance compared to other industries. A large amount of R&D invested in the biotech industry and its capitalization are considered as key to the future sustainable success of these firms [ 46 ].…”

Section: Literature Reviewmentioning

confidence: 99%

Eco-innovation influence on business performance in Jordanian micro, small and medium enterprises operating in the food processing sector

et al. 2023

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Innovative performance is a fundamental asset for building competitive advantage of micro, small and medium enterprises MSMEs. This research empirically examines the direct and indirect relationship between eco-innovation and business performance in Jordanian MSMEs enterprises working in the food processing sector. This research draws on the resource-based view theory to investigate the inter-relationships among three types of eco-innovation (process, product, organizational) and their relative impact on business performance. Furthermore, the researchers used structural equation modelling of 86 samples collected from Jordanian MSMEs operating in the food processing sector. The major contribution of this research is providing a holistic view that explains the inter-relationship among eco-process, eco-product, and eco-organizational innovation. The research reveals the impact of eco-innovation variables on business performance. The greatest is the impact of eco-process on business performance followed by eco-product and eco-organizational respectively. Regarding the effect of eco-organizational and eco-process innovation on eco-product, the findings of the study showed that the greatest is the effect of eco-organizational followed by eco-process. According to the post hoc, the mean differences show that there is statically significant difference in the responses of the respondents towards eco- process regarding different organization age.

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“…Following previous studies (e.g. Buchanan et al, 2018;Khaoula & Moez, 2019;Lee, 2019;Ni et al, 2019) the firm value is proxied by Tobin's Q. Earnings which is revenues minus expenses is measured by net income divided by total assets (Wang, 2019).…”

Section: Literature Review and Hypotheses − The Impact Of Large Deferred Tax And Accruals On The Relationship Between Earnings And Firm Vmentioning

confidence: 99%

Earnings and Firm Value: The Moderating Impact of Large Deferred Taxes and Large Accruals in Indonesia

Sutopo

Adiati

Siddi

2021

Business: Theory and Practice

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Deferred tax and accruals have the characteristic of causing reported earnings to be above or below normal. Both are permitted to be used by companies in financial reporting. This study examines whether large deferred taxes and large accruals have an impact on the relationship between earnings and firm value. Using a sample that includes 1938 company-year observations for the 2007−2017 periods listed on the Indonesia Stock Exchange (IDX), this study found that large positive deferred taxes with large positive accruals had weakened the relationship between earnings and firm value. In contrast to these results, a large negative deferred tax with a large negative accrual does not have an impact on the relationship between earnings and the firm value. This finding suggests that “liberal” accounting policies that cause reported “above normal” earnings have a negative effect on the association between earnings and firm value. However, “below normal” earnings resulting from “conservative” accounting policies do not affect the association between earnings and firm value. The uniqueness of this study is the incorporation of deferred taxes with accruals with variations in the form of positive versus negative and large versus small. The findings imply that the presentation of financial information with small deferred taxes and small accruals is more beneficial for investors compared to financial information with large positive deferred taxes and large positive accruals. However, results of this study indicate that large negative deferred taxes and large negative accruals, indicating conservative accounting, are not responded differently by investors.

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R&D accounting treatment, firm performance, and market value: Biotech firms case study

Cited by 7 publications

References 37 publications

An event study analysis of the impact of bonus share announcements on Nifty 100 and Nifty Midcap 100 companies

An event study analysis of the impact of bonus share announcements on Nifty 100 and Nifty Midcap 100 companies

Eco-innovation influence on business performance in Jordanian micro, small and medium enterprises operating in the food processing sector

Earnings and Firm Value: The Moderating Impact of Large Deferred Taxes and Large Accruals in Indonesia

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