LA RELEVANCIA DE LOS GASTOS DE I+D. ESTUDIO EMPÍRICO EN EL SECTOR DEL AUTOMÓVIL/THE VALUE-RELEVANCE OF THE R&D EXPENDITURES. AN EMPIRICAL STUDY ON THE AUTOMOTIVE INDUSTRY

The Financial Standard Accounting Board (FASB) is concerned about the deterioration of utility of the financial information. For this reason, FASB opened a process of consultations and deliberations with the object of including it in its calendar: it was obvious the importance of the investments in innovation, but the generally accepted accounting principles in USA (US GAAP) didn't allow their recognition like assets. This paper aims to examine the value-relevance of R&D expenditures, using a regression model based on the Ohlson equity-valuation framework. The researchers contribute evidence about the direction that the international standards should follow. The instrument consists in different specifications of a valuation model, in other words, of Ohlson Model (1995). The sample is composed of US listed automotive firms over a 10-year period (1995-2004). Their findings show the association between current and the lagged R&D expenditure and stock price is negative and significant. These findings indicate that the investors consider that current R&D is an expense and is not an asset.