We examine whether managers' decisions to capitalize or expense R&D expenditures convey information about the future performance of the firm. Focusing on a French setting where managers can choose to capitalize R&D expenditures under certain circumstances, we find that, after controlling for...

Accounting for research and development (R&D) costs is an open issue. SFAS n°2 mandates that all R&D costs are immediately expensed. International standards prescribe a capitalization of R&D costs if they meet certain criteria (IAS 38). The cost method is perfectly objective and verifiable. The...

Accounting for R&D costs is an open issue. SFAS N°2 mandates that all R&D costs must be immediately expensed. IAS 38 requires capitalization of R&D costs if they meet certain criteria. Recent research papers show the value relevance of capitalized R&D. We test the value relevance of R&D...

Purpose – This paper aims to focus on how forecasts information is disclosed in IPO prospectuses. In France, managers report either detailed forecasts or only a brief summary. Design/methodology/approach – The authors investigate the determinants and consequences of the varying levels of...

This paper focuses on how forecasts information is disclosed in IPO prospectuses. In France, managers report either detailed forecasts or only a brief summary. We investigate the determinants and consequences of the varying levels of detail provided in these forecasts. Based on a sample of 82...

The paper sets out to analyse the effects of the financial crisis on the international standard-setter in 2008 and the attempts made to shoot the messenger - to blame IAS 39 for creating the crisis for reporting unrealised losses, rather than the cause being bankers making bad investment...

The crux of New Public Management (NPM) is to use both externalization and private management criteria to evaluate the efficiency of public action and investments (Rouillard, 2003; Hood and Peters, 2004). Thus the efficiency of NPM is presented as depending on the willingness and capacity of public...