Value relevance assigned to disclosure of R&D expenditures in the Brazilian capital market

Authors

  • Andrezza de Albuquerque Espíndola Universidade Federal do Ceará (UFC)
  • José Glauber Cavalcante dos Santos Universidade Federal do Ceará (UFC)
  • Alessandra Carvalho de Vasconcelos Universidade Federal do Ceará (UFC)

DOI:

https://doi.org/10.19094/contextus.v0i0.33312

Keywords:

Value Relevance, Disclosure, Research & Development, Innovation, Intangibles

Abstract

This paper aimed to analyze the value relevance of disclosing research and development (R&D) expenditures in Brazil’s capital market between 2011 and 2015. The study has a documental and quantitative approach and examined a population of 440 public companies listed in B3. Applying Ohlson’s model (1995), data were collected concerning earnings, net revenue, equity, R&D expenditures (2011-2015) and market value (2010-2015), composing a sample of 1,241 observations. These data come from financial statements, explanatory notes and Economatica® database. The analysis used linear regressions with panel data estimation with fixed effects. The hypotheses were rejected because the R&D expenditure disclosure and the investment in R&D expenditures are not value relevant. We concluded that R&D expenditures disclosure and the value applied in R&D activities do not indicate a greater probability to gain competitive advantage in the context of the Brazilian capital market.

Author Biographies

  • Andrezza de Albuquerque Espíndola, Universidade Federal do Ceará (UFC)
    Bacharel em Ciências Contábeis (UFC)
  • José Glauber Cavalcante dos Santos, Universidade Federal do Ceará (UFC)

    Doutorando em Administração e Controladoria (UFC)

    Mestre em Administração e Controladoria (UFC)

    Bacharel em Ciências Contábeis (UFC)

  • Alessandra Carvalho de Vasconcelos, Universidade Federal do Ceará (UFC)

    Professora Associada do Departamento de Contabilidade e do Programa de Pós-graduação em Administração e Controladoria (PPAC/UFC)

    Doutorada em Engenharia de Produção (UFSC)

    Mestre em Ciências Contábeis (FURB)

    Bacharel em Ciências Econômicas e Ciências Contábeis (UNIFOR)

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11/05/2018

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Vol. 16 No. esp.: FEAAC's 80 years 2018

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Value relevance assigned to disclosure of R&D expenditures in the Brazilian capital market. (2018). Contextus - Revista Contemporânea De Economia E Gestão, 16(esp.), 115-140. https://doi.org/10.19094/contextus.v0i0.33312