Abstract
In this paper, we examine the information content and value relevance of research and development (R&D) costs before and after the SEC eliminated the 20-F reconciliation to U.S. GAAP for Foreign Public Issuers (FPIs). Prior to the elimination both FPIs and U.S. firms experienced an increase in the indirect effect of R&D on operating income. After the requirement was eliminated, the direct effect increased for FPIs and the indirect effect decreased. This is in contrast to U.S. firms who experienced a continued increase in the indirect effect. This shift indicates there was a loss of informativeness in the R&D disclosures for FPIs.
Original language | English (US) |
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Article number | 1650025 |
Journal | Review of Pacific Basin Financial Markets and Policies |
Volume | 19 |
Issue number | 4 |
DOIs | |
State | Published - Dec 1 2016 |
Keywords
- Accounting quality
- IFRS
- Research & development
- U.S. GAAP
ASJC Scopus subject areas
- Finance
- Economics and Econometrics