Cross-Sectional Determinants of Analyst Coverage for R&D Firms

被引：0

作者：

Khallaf, Ashraf ^{[1
]}

Salama, Feras M. ^{[1
]}

Darayseh, Musa ^{[1
]}

Alotaibi, Eid ^{[1
]}

机构：

[1] Amer Univ Sharjah, Sch Business Adm, Dept Accounting, Sharjah 26666, U Arab Emirates

来源：

RISKS | 2024年 / 12卷 / 06期

关键词：

analyst coverage; reporting biases; expensing vs. capitalization of R&D; uncertainty; scale effects of R&D; investors' attention; VALUE-RELEVANCE; MARKET VALUATION; INFORMATION; EARNINGS; INTANGIBLES; CAPITALIZATION; CONSERVATISM; ENVIRONMENT; INCENTIVES; SPILLOVERS;

D O I：

10.3390/risks12060098

中图分类号：

F8 [财政、金融];

学科分类号：

0202 ;

摘要：

Prior research document a positive association between analyst coverage and R&D. However, they do not investigate what particular attribute of R&D leads to this positive association. In this study we aim to fill the gap in the extant literature and explore the cross-sectional determinants of the association between R&D and analyst coverage. We investigate four cross-sectional determinants: reporting biases arising from expensing of R&D compared to capitalization of R&D, uncertainty associated with R&D, investors' attention, and scale effects of R&D. We find that while reporting biases and uncertainty decrease analyst coverage for R&D firms, investors' attention and scale effects of R&D increase analyst coverage. Furthermore, we find that the positive association between R&D and analyst coverage documented by Barth et al. is fully explained by scale effects of R&D.

引用

页数：28

共 70 条

[1] Information asymmetry, R&D, and insider gains [J].

Aboody, D ;

Lev, B .

JOURNAL OF FINANCE, 2000, 55 (06) :2747-2766

[2] The value relevance of intangibles: The case of software capitalization [J].

Aboody, D ;

Lev, B .

JOURNAL OF ACCOUNTING RESEARCH, 1998, 36 :161-191

[3] SEC's acceptance of IFRS-based financial reporting: An examination based in institutional theory [J].

Alon, Anna ;

Dwyer, Peggy D. .

ACCOUNTING ORGANIZATIONS AND SOCIETY, 2016, 48 :1-16

[4] Value-relevance of nonfinancial information: The wireless communications industry [J].

Amir, E ;

Lev, B .

JOURNAL OF ACCOUNTING & ECONOMICS, 1996, 22 (1-3) :3-30

[5]

Amir E., 2003, European Accounting Review, V12, P635

[6] All that glitters: The effect of attention and news on the buying behavior of individual and institutional investors [J].

Barber, Brad M. ;

Odean, Terrance .

REVIEW OF FINANCIAL STUDIES, 2008, 21 (02) :785-818

[7] High-technology intangibles and analysts' forecasts [J].

Barron, OE ;

Byard, D ;

Kile, C ;

Riedl, EJ .

JOURNAL OF ACCOUNTING RESEARCH, 2002, 40 (02) :289-312

[8] Analyst coverage and intangible assets [J].

Barth, ME ;

Kasznik, R ;

McNichols, MF .

JOURNAL OF ACCOUNTING RESEARCH, 2001, 39 (01) :1-34

[9] Conditional and unconditional conservatism: Concepts and modeling [J].

Beaver, WH ;

Ryan, SG .

REVIEW OF ACCOUNTING STUDIES, 2005, 10 (2-3) :269-309

[10] IFRS adoption in the United States: An analysis of the role of the SEC's Chairs [J].

Becker, Kirstin ;

Daske, Holger ;

Pelger, Christoph ;

Zeff, Stephen A. .

JOURNAL OF ACCOUNTING AND PUBLIC POLICY, 2023, 42 (03)

← 1 2 3 4 5 6 7 →