Lin, Fengyi; Zhao, Lijuan; Guan, Liming - In: Emerging Markets Finance and Trade 50 (2014) 1S, pp. 254-264
We examine the rounding phenomenon (called <i>window dressing</i>) in financial reporting of U.S. high-tech and low-tech firms. By requiring that investments in research and development be expensed as incurred, the generally accepted accounting principles provide low-tech firms with a larger set of...