Atallah, Gamal; Khazabi, Massoud - In: International Journal of Business and Economics 4 (2005) 2, pp. 107-121
This paper studies the decision of firms to expense or capitalize R&D expenditures. The firm has an incentive to mismatch the benefits and costs of R&D, expensing a larger portion of R&D when the benefits occur in the long-run and capitalizing a larger portion when the benefits occur in the...