R&D Capitalization and Overinvestment in Continuing ProjectsCornell University, 2008 - 90 pages |
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92 MBA students alternative project alternative R&D project Analysis of Variance ANOVAs behavior capital market pressures capitalization of R&D capitalize condition capitalizing R&D carrying value cash flows Cornell University Descriptive Statistics effect of reporting effects of R&D escalation of commitment event of project expenditures are capitalized experienced executives financial reporting Gross Profit High Resp./Capitalize high self monitors impression management concerns Income Statement investment decisions Kilduff and Day Likelihood of Switching likert scale low self monitors manipulates R&D reporting meet earnings benchmarks method and project monitoring low monitoring scale Number original project overinvestment in continuing p-value Panel participants prior research project abandonment project choice project responsibility low R&D capitalization R&D expenditures R&D Expense R&D is capitalized R&D reporting method rate their likelihood real earnings management reporting consequences reporting method capitalize reputation concerns reputation damage Scenario second year envelope stay with original studies survey Switching to Alternative TRUE FALSE Two-Way Interaction