What question did this study set out to answer?

To investigate how concerns about reported net income affect R&D investment decisions in firms.

March 18, 2026

The Effect of Concern about Reported Income on Discretionary Spending Decisions: The Case of Research and Development.

WBWilliam R. BaberGeorgetown University PFPatricia M. FairfieldGeorgetown University

Key Points

To investigate how concerns about reported net income affect R&D investment decisions in firms.
Conducted a case study of 438 American industrial firms between 1977 and 1987.
Analyzed variations in relative spending for R&D based on income trends.
Examined factors influencing R&D investment choices.
Firms adjusted R&D spending based on concerns over net income reporting.
Identified factors that significantly impact decisions regarding R&D investments.

Abstract

Abstract Investigates whether concern about reporting favorable trend in accounting net income influence decisions to invest in research and development (R R Analysis of increases and decreases in relative spending for R Factors which influence R&D investments.

AI से पूछें

Bookmark

View Full Paper