Title: Accounting treatment of research and development expenditures and firms performance: evidence from Greek listed firms in the Athens Stock Exchange

Authors: Petros Kalantonis

Addresses: Department of Business Administration, Piraeus University of Applied Sciences (Technological Education Institute of Piraeus), 250 Thivon str, Egaleo, Greece

Abstract: It is common sense that R&D investments could be a vehicle for financial development. However these investments have been related with uncertain financial outcome. As a result of this different approaches, for the reporting of the expenditure on R&D, have been stated and also have been adopted in the Accounting Standards of many countries. We have investigated in this research study the impact of R&D expenditure on firms' value and their financial performance. For this purpose we explored 60 listed firms in the Athens Stock Exchange for the period 2011-2013 and we found evidence for significant differences in the financial performance between R&D oriented and not R&D oriented in the period of Greek financial crisis. We used and analysed reported data, in the financial statements of firms, according to the International Accounting Standards.

Keywords: financial statements; research and development; IAS; International Accounting Standards; Greek Accounting Standards; R&D expenditure; firm performance; Greece; R&D investment; firm value; financial performance.

DOI: 10.1504/IJFERM.2016.082993

International Journal of Financial Engineering and Risk Management, 2016 Vol.2 No.3, pp.211 - 219

Received: 07 Jul 2016
Accepted: 30 Aug 2016

Published online: 17 Mar 2017 *

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