Characteristics of firms which capitalise development expenditures

Wang, Baojun

Thumbnail
Share
View fulltext online
Date
2006
Citation:
Wang, B. (2006). Characteristics of firms which capitalise development expenditures. Research Project submitted in partial fulfilment of the requirements for the degree of Master of Professional Accountancy, Unitec New Zealand.
Permanent link to Research Bank record:
https://hdl.handle.net/10652/2207
Abstract
This project investigates the characteristics of firms in New Zealand who choose to expense versus capitalise expenditures for internally generated development projects. Using a sample of 315 NZ firm-year observations, I find that the decision to expense versus capitalize is influenced by profitability, financial health and intensity of a firm’s research and development (R&D) programme. Firms which capitalise R&D are smaller, less profitable, more likely to be in financial distress, and have higher intensity R&D programs. These results suggest that New Zealand firms are similar to firms in other countries who seem to make choices among accounting alternatives in a way to manage reported earnings
Keywords:
expense versus capitalize, research & development (R&D), reported earnings, management accounting
ANZSRC Field of Research:
150105 Management Accounting
Degree:
Master of Business, Unitec Institute of Technology
Copyright Holder:
Author

Copyright Notice:
All rights reserved
Rights:
This digital work is protected by copyright. It may be consulted by you, provided you comply with the provisions of the Act and the following conditions of use. These documents or images may be used for research or private study purposes. Whether they can be used for any other purpose depends upon the Copyright Notice above. You will recognise the author's and publishers rights and give due acknowledgement where appropriate.
Metadata
Show detailed record
This item appears in