R&D Expenses and the Expectation of Value Generation in Brazilian Firms
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| Format: | Artículo científico |
| Language: | en |
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Universidade do Vale do Rio dos Sinos
2020
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| _version_ | 1876466931783958528 |
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| author | Júlia Peres Tortoli |
| author_facet | Júlia Peres Tortoli |
| contents | R&D Expenses and the Expectation of Value Generation in Brazilian Firms Júlia Peres Tortoli Anelise Krauspenhar Pinto Figari Marcelo Augusto Ambrozini Marcelo Botelho da Costa Moares Administración y Contabilidad Innovation R&D expenses Intangible assets Granger Causality Test The purpose of this study is to verify the existence of a causal relationship between R&D expenses not activated by Accounting, a proxy for innovation, and the book-to-market ratio (BTM), which demonstrates expectation of value generation in firms. We analyzed a sample composed of 30 Brazilian public firms that disclosed information about R&D expenses in their footnotes, from 2010 to 2015. We applied the Granger Causality Test and the results reveal that INOV causes BTM in a 3-lag cycle and BTM causes INOV in a 4-lag, both with a negative effect. In other words, R&D expenses discharged in the Profit and Loss (P&L) provide an increase in the firm's market value above its book value after 3 years on average. After that, on the 4th. year, occurs the perception of innovation, signaling the evidence of a potential valorization of the company by investors, recognizing a continuous growth cycle. These findings emerge the necessity of a better understanding of the R&D expenses’ role in the value generation process, corroborating with the accounting users’ decision-making process. 2020 artículo científico 1984-8196 https://www.redalyc.org/articulo.oa?id=337264552007 https://www.redalyc.org/journal/3372/337264552007/ https://www.redalyc.org/journal/3372/337264552007/html/ https://www.redalyc.org/journal/3372/337264552007/337264552007.epub https://www.redalyc.org/journal/3372/337264552007/movil en http://www.redalyc.org/revista.oa?id=3372 Base Revista de Administração e Contabilidade da UNISINOS application/pdf Universidade do Vale do Rio dos Sinos Base Revista de Administração e Contabilidade da UNISINOS (Brasil) Num.1 Vol.17 |
| format | Artículo científico |
| id | redalyc_337264552007 |
| institution | Redalyc |
| language | en |
| publishDate | 2020 |
| publisher | Universidade do Vale do Rio dos Sinos |
| spellingShingle | R&D Expenses and the Expectation of Value Generation in Brazilian Firms Júlia Peres Tortoli Administración y Contabilidad Innovation R&D expenses Intangible assets Granger Causality Test R&D Expenses and the Expectation of Value Generation in Brazilian Firms Júlia Peres Tortoli Anelise Krauspenhar Pinto Figari Marcelo Augusto Ambrozini Marcelo Botelho da Costa Moares Administración y Contabilidad Innovation R&D expenses Intangible assets Granger Causality Test The purpose of this study is to verify the existence of a causal relationship between R&D expenses not activated by Accounting, a proxy for innovation, and the book-to-market ratio (BTM), which demonstrates expectation of value generation in firms. We analyzed a sample composed of 30 Brazilian public firms that disclosed information about R&D expenses in their footnotes, from 2010 to 2015. We applied the Granger Causality Test and the results reveal that INOV causes BTM in a 3-lag cycle and BTM causes INOV in a 4-lag, both with a negative effect. In other words, R&D expenses discharged in the Profit and Loss (P&L) provide an increase in the firm's market value above its book value after 3 years on average. After that, on the 4th. year, occurs the perception of innovation, signaling the evidence of a potential valorization of the company by investors, recognizing a continuous growth cycle. These findings emerge the necessity of a better understanding of the R&D expenses’ role in the value generation process, corroborating with the accounting users’ decision-making process. 2020 artículo científico 1984-8196 https://www.redalyc.org/articulo.oa?id=337264552007 https://www.redalyc.org/journal/3372/337264552007/ https://www.redalyc.org/journal/3372/337264552007/html/ https://www.redalyc.org/journal/3372/337264552007/337264552007.epub https://www.redalyc.org/journal/3372/337264552007/movil en http://www.redalyc.org/revista.oa?id=3372 Base Revista de Administração e Contabilidade da UNISINOS application/pdf Universidade do Vale do Rio dos Sinos Base Revista de Administração e Contabilidade da UNISINOS (Brasil) Num.1 Vol.17 |
| title | R&D Expenses and the Expectation of Value Generation in Brazilian Firms |
| topic | Administración y Contabilidad Innovation R&D expenses Intangible assets Granger Causality Test |
| url | https://www.redalyc.org/articulo.oa?id=337264552007 https://www.redalyc.org/journal/3372/337264552007/ https://www.redalyc.org/journal/3372/337264552007/html/ https://www.redalyc.org/journal/3372/337264552007/337264552007.epub https://www.redalyc.org/journal/3372/337264552007/movil |