Discretionary capitalization of development expenditures

Petek Primož, Mateja Jerman, Sandra Janković
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Abstract

The paper examines the discretionary nature of (non)capitalizing development expenditures in financial statements. A review of the literature shows that companies may have different motives and factors for (non)capitalizing development expenditures. This study analyzes a sample of 547 companies from the information and communications technology (ICT) sector listed on the Frankfurt Stock Exchange in the period 2009-2018. The ICT sector was selected because it represents an industry with high R&D (research and development) expenditures. The results of the probit regression analysis made on 3,718 observations show that the capitalization of development expenditures is significantly positively related to the size and return on assets of the firm and negatively related to the age of the firm. Larger and more profitable firms are more likely to capitalize development expenditures, while older firms are less likely to capitalize development expenditures. Our results contribute to the literature in the field of positive accounting theory providing additional insights into factors associated with decisions to (non)capitalize development expenditures.
发展支出酌情资本化
本文考察了财务报表中(非)资本化发展支出的自由裁量性质。对文献的回顾表明,公司对(非)资本化开发支出可能有不同的动机和因素。本研究分析了2009-2018年期间在法兰克福证券交易所上市的信息和通信技术(ICT)行业的547家公司的样本。信息通信技术(ICT)行业之所以被选中,是因为它是一个研发(r&d)支出较高的行业。对3718个观察结果进行概率回归分析的结果表明,开发支出的资本化与企业的规模和资产回报率显著正相关,与企业的年龄负相关。更大和更有利可图的公司更有可能将开发支出资本化,而老公司则不太可能将开发支出资本化。我们的研究结果有助于积极会计理论领域的文献,为(非)资本化发展支出决策相关因素提供了额外的见解。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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6
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12 weeks
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