Capitalization of R&D costs and earnings management: Evidence from Italian listed companies

Aboody, 1998, The value relevance of intangibles: The case of software capitalization, Journal of Accounting Research, 36, 161, 10.2307/2491312 AICPA, 1994 Association for Investment Management and Research, 1993 Ballester, 2003, The economic value of the R&D intangibile assets, European Accounting Review, 12, 605, 10.1080/09638180310001628437 Barnea, 1976, Classificatory smoothing of income with extraordinary items, The Accounting Review, 110 Barth, 1995, Fair value accounting: Effects on banks' earning volatility, regulatory capital, and value of contractual cash flows, Journal of Banking and Finance, 19, 577, 10.1016/0378-4266(94)00141-O Beidleman, 1973, Income smoothing: The role of management, The Accounting Review, 48, 653 Bhushan, 1994, An informational efficiency perspective on the post-earnings announcement drift, Journal of Accounting and Economics, 18, 45, 10.1016/0165-4101(94)90018-3 Boone, 2007, The determinants of corporate board size and composition: An empirical analysis, Journal of Financial Economics, 85, 66, 10.1016/j.jfineco.2006.05.004 Brunello, 2003, CEO turnover in insider-dominated boards: The Italian case, Journal of Banking & Finance, 27, 1027, 10.1016/S0378-4266(02)00244-3 Bublitz, 1989, The information in discretionary outlays: Advertising, research and development, The Accounting Review, 108 Buckmaster, 2001 Burgstahler, 1997, Earnings management to avoid earnings decreases and losses, Journal of Accounting and Economics, 24, 99, 10.1016/S0165-4101(97)00017-7 Bushee, 1998, The influence of institutional investors on myopic R&D investment behavior, The Accounting Review, 73, 305 Cahan, 1992, The effect of antitrust investigations on discretionary accruals: A refined test of the political-cost hypothesis, The Accounting Review, 67, 77 Chaney, 1995, Earnings management and firm valuation under asymmetric information, Journal of Corporate Finance, 1, 319, 10.1016/0929-1199(94)00008-I Chaney, 1998, The use of accruals in income smoothing: A permanent earnings hypothesis, Advances in Quantitative Analysis of Finance and Accounting, 6, 103 Chen, T., & Radhakrishnan, S., (2005). Family firms, audit and non-audit fees and earnings management. Working Paper, Hong Kong University of Science and Technology. Copeland, 1968, Income smoothing, Journal of Accounting Research, 6, 101, 10.2307/2490073 Corbetta, 2005, Il governo delle imprese italiane quotate a controllo familiare: I risultati di una ricerca esplorativa, Economia & Management, 59 DeAngelo, 1986, Accounting numbers as market valuation substitutes: A study of management buyouts of public stockholders, The Accounting Review, 61, 400 DeAngelo, 1994, Accounting choice in troubled companies, Journal of Accounting and Economics, 17, MS, 10.1016/0165-4101(94)90007-8 DeFond, 1994, Debt covenant and manipulation of accruals, Journal of Accounting and Economics, 17, 145, 10.1016/0165-4101(94)90008-6 Dechow, 2004 Dechow, 1991, Executive incentives and the horizon problem: An empirical investigation, Journal of Accounting and Economics, 51, 10.1016/0167-7187(91)90058-S Dechow, 1995, Detecting earnings management, The Accounting Review, 70, 193 Dechow, 1996, Causes and consequences of earnings manipulation: An analysis of firms subject to enforcement actions by the SEC, Contemporary Accounting Research, 13 Dowdell, 2004, The impact of SEC scrutiny on financial statement reporting of in-process research and development expense, Journal of Accounting and Public Policy, 23, 227, 10.1016/j.jaccpubpol.2004.04.003 Duke, 1990, An empirical examination of debt covenant restrictions and accounting-related debt proxies, Journal of Accounting and Economics, 12, 45, 10.1016/0165-4101(90)90041-2 El Gazzar, 1986, Accounting for leasing by lessees, Journal of Accounting and Economics, 8, 217, 10.1016/0165-4101(86)90004-2 FASB, 1974 FASB, 1980 FASB, 1985 Fan, 2002, Corporate ownership structure and the informativeness of accounting earnings in East Asia, Journal of Accounting & Economics, 33, 401, 10.1016/S0165-4101(02)00047-2 Francis, 1996, Causes and effects of discretionary asset write-offs, Journal of Accounting Research, 34, 117, 10.2307/2491429 Fudenberg, 1995, A theory of income and dividend smoothing based on incumbency rents, Journal of Political Economy, 103, 75, 10.1086/261976 Gaver, 1995, Additional evidence on bonus plans and income management, Journal of Accounting and Economics, 19, 3, 10.1016/0165-4101(94)00358-C Gebhardt, 2001, Toward an implied cost of capital, Journal of Accounting Research, 39, 135, 10.1111/1475-679X.00007 Godfrey, 1999, Political cost influences on income smoothing via extraordinary item classification, Accounting and Finance, 39, 229, 10.1111/1467-629X.00025 Gordon, 1964, Postulates, principles and research in accounting, The Accounting Review, 251 Healy, 1985, The effect of bonus schemes on accounting decisions, Journal of Accounting and Economics, 7, 85, 10.1016/0165-4101(85)90029-1 Healy, 1999, A review of the earnings management literature and its implications for standard setting, Accounting Horizons, 13, 365, 10.2308/acch.1999.13.4.365 Healy, 2002, R&D accounting and tradeoff between relevance and objectivity, Journal of Accounting Research, 40, 677, 10.1111/1475-679X.00067 Hirschey, 1985, Amortization policy for advertising and R&D expenditures, Journal of Accounting Research, 326, 10.2307/2490921 Holthausen, 1995, Annual bonus schemes and the manipulation of earnings, Journal of Accounting and Economics, 19, 29, 10.1016/0165-4101(94)00376-G Hunt, 1985, Potential determinants of corporate inventory accounting decisions, Journal of Accounting Research, 448 Hunt, 1996, Managing interactive accounting measures to meet multiple objectives: A study of LIFO firms, Journal of Accounting and Economics, 21, 339, 10.1016/0165-4101(96)00422-3 Huson, M., Wiedman, C., & Wier, H., (2003). Cash Compensation and Earnings Components Around CEO Turnover. Working Paper University of Alberta. IASB, 2004 IASB, 2004 Imhoff, 1977, Income smoothing: A case for doubt, Accounting Journal, 85 Jensen, 1976, Theory of the firm: Managerial behaviour, agency costs and ownership structure, Journal of Financial Economics, 4, 305, 10.1016/0304-405X(76)90026-X Jones, 1991, Earnings management during import relief investigations, Journal of Accounting Research, 29, 193, 10.2307/2491047 Kamin, 1978, The smoothing of income numbers: Some empirical evidence on systematic differences among manager-controlled and owner-controlled firms, Accounting, Organisations and Society, 3, 10.1016/0361-3682(78)90022-3 Kennedy, 2003 Klein, 2002, Audit committee, board of director characteristics and earnings management, Journal of Accounting and Economics, 33, 375, 10.1016/S0165-4101(02)00059-9 Kothari, 2002, Capitalization versus expensing: Evidence on the uncertainty of future earnings from current investments in PPE versus R&D, Review of Accounting Studies, 7, 355, 10.1023/A:1020764227390 Lev, 1999, The boundaries of financial reporting and how to extend them, Journal of Accounting Research, 37, 353, 10.2307/2491413 Mande, 2000, Income smoothing and discretionary R&D expenditures of Japanese firms, Contemporary Accounting Research, 17, 263, 10.1506/QXBV-UY71-A6W1-FWT4 McNichols, 1988, Evidence of earnings management from the provision for bad debts, Journal of Accounting Research, 26, 1, 10.2307/2491176 Miller, 1998, Determinants of the valuation allowance for deferred tax assets under SFAS No. 109, The Accounting Review, 73, 213 Monahan, 2005, Conservatism, growth and the role of accounting numbers in the fundamental analysis process, Review of Accounting Studies, 10, 227, 10.1007/s11142-005-1530-8 Moses, 1987, Income smoothing and incentives: Empirical tests using accounting changes, The Accounting Review, 358 Nelson, 2003, How are earnings managed? Examples from auditors, Accounting Horizons, 17, 10.2308/acch.2003.17.s-1.17 Perry, 1994, Earnings expectations and discretionary research and development spending, Accounting Horizons, 8, 43 Press, 1990, Accounting-based constraints in public and private debt agreements: Their association with leverage and impact on accounting choice, Journal of Accounting and Economics, 12, 65, 10.1016/0165-4101(90)90042-3 Ronen, 1981 Rusbarsky, M. (1988). Motivations for discretionary accounting changes: the case of the switch from accelerated to straight-line depreciation, Working Paper, Graduate School of Management, University of California, Riverside, CA. Schilit, 2002 Schipper, 1989, Commentary on earnings management, Accounting Horizons, 91 Schrand, 2003, Earnings management using the valuation allowance for deferred tax assets under SFAS No. 109, Contemporary Accounting Research, 20, 579, 10.1506/480D-098U-607R-5D9W Shevlin, 1991, The valuation of R&D firms with R&D partnerships, The Accounting Review, 1 Sougiannis, 1994, The accounting based valuation of corporate R&D, The Accounting Review, 44 Sweeney, 1994, Debt-covenant violations and managers' accounting responses, Journal of Accounting and Economics, 17, 281, 10.1016/0165-4101(94)90030-2 Tucker, 2006, Does income smoothing improve earnings informativeness?, The Accounting Review, 81, 251, 10.2308/accr.2006.81.1.251 Trueman, 1988, An explanation for accounting income smoothing, Journal of Accounting Research, 26 Vafeas, 2000, Board structure and the informativeness of earnings, Journal of Accounting and Public Policy, 19, 10.1016/S0278-4254(00)00006-5 Wang, 2006, Founding family ownership and earnings quality, The Accounting Review, 44, 619 Wang, 1994, Accounting income smoothing and stockholder wealth, Journal of Applied Business Research, 10, 96, 10.19030/jabr.v10i3.5929 Watts, 1986 Wong, 1988, Political costs and an intraperiod accounting choice for export tax credits, Journal of Accounting and Economics, 10, 37, 10.1016/0165-4101(88)90022-5 Yermack, 1996, Higher market valuation of companies with a small board of directors, Journal of Financial Economics, 40, 185, 10.1016/0304-405X(95)00844-5 Young, 1998, The determinants of managerial accounting policy choice: Further evidence for the UK, Accounting and Business Research, 28, 131, 10.1080/00014788.1998.9728904 Zucca, 1992, A closer look at discretionary writedowns of impaired assets, Accounting Horizons, 30