We investigate whether the use of a high quality auditor and increased regulatory monitoring of R&D reporting influence both the level of R&D expenditure capitalized by Australian companies from 1992 to 2002 and the market’s perception of the reliability of these figures. The results indicate...

We investigate whether the use of a high quality auditor and increased regulatory monitoring of Ramp;D reporting influence both the level of Ramp;D expenditure capitalized by Australian companies from 1992 to 2002 and the market's perception of the reliability of these figures. The results...

This study investigates the link between audit quality and the market's perception of the value of discretion in accounting for Ramp;D costs (Australian GAAP permits Ramp;D costs to be capitalized) and the impact of changes in that discretion. The study examines companies reporting of...