An examination of the restatements of in-process research and development

Persistent Link:
http://hdl.handle.net/10150/290103
Title:
An examination of the restatements of in-process research and development
Author:
Banyi, Monica L.
Issue Date:
2004
Publisher:
The University of Arizona.
Rights:
Copyright © is held by the author. Digital access to this material is made possible by the University Libraries, University of Arizona. Further transmission, reproduction or presentation (such as public display or performance) of protected items is prohibited except with permission of the author.
Abstract:
This paper uses several approaches to assess the impact of the Security and Exchange Commission's (SEC) scrutiny of firms' purchase accounting and in-process research and development write-offs during 1997 and 1998. Using hand collected data, I examine the characteristics of firms choosing to overstate IPR&D and the market's reaction to the restatement announcements. I discuss the motivations for overstating IPR&D and find evidence consistent with firms using IPR&D write-offs to improve future earnings. I use a partial observability probit model and determine that IPR&D overstatements are related to the market's expectations for the firm's future performance and the materiality of the intangible premium. Finally, using methods to control for the contemporaneous correlation among the restatement announcements, I find that the market reaction to most IPR&D restating events is weak. Few firms reported large negative price reactions to IPR&D restatement events, thus, investors were, for the most part, not mislead by the IPR&D overstatements as claimed by the SEC.
Type:
text; Dissertation-Reproduction (electronic)
Keywords:
Business Administration, Accounting.
Degree Name:
Ph.D.
Degree Level:
doctoral
Degree Program:
Graduate College; Business Administration
Degree Grantor:
University of Arizona
Advisor:
Dhaliwal, Dan S.

Full metadata record

DC FieldValue Language
dc.language.isoen_USen_US
dc.titleAn examination of the restatements of in-process research and developmenten_US
dc.creatorBanyi, Monica L.en_US
dc.contributor.authorBanyi, Monica L.en_US
dc.date.issued2004en_US
dc.publisherThe University of Arizona.en_US
dc.rightsCopyright © is held by the author. Digital access to this material is made possible by the University Libraries, University of Arizona. Further transmission, reproduction or presentation (such as public display or performance) of protected items is prohibited except with permission of the author.en_US
dc.description.abstractThis paper uses several approaches to assess the impact of the Security and Exchange Commission's (SEC) scrutiny of firms' purchase accounting and in-process research and development write-offs during 1997 and 1998. Using hand collected data, I examine the characteristics of firms choosing to overstate IPR&D and the market's reaction to the restatement announcements. I discuss the motivations for overstating IPR&D and find evidence consistent with firms using IPR&D write-offs to improve future earnings. I use a partial observability probit model and determine that IPR&D overstatements are related to the market's expectations for the firm's future performance and the materiality of the intangible premium. Finally, using methods to control for the contemporaneous correlation among the restatement announcements, I find that the market reaction to most IPR&D restating events is weak. Few firms reported large negative price reactions to IPR&D restatement events, thus, investors were, for the most part, not mislead by the IPR&D overstatements as claimed by the SEC.en_US
dc.typetexten_US
dc.typeDissertation-Reproduction (electronic)en_US
dc.subjectBusiness Administration, Accounting.en_US
thesis.degree.namePh.D.en_US
thesis.degree.leveldoctoralen_US
thesis.degree.disciplineGraduate Collegeen_US
thesis.degree.disciplineBusiness Administrationen_US
thesis.degree.grantorUniversity of Arizonaen_US
dc.contributor.advisorDhaliwal, Dan S.en_US
dc.identifier.proquest3145041en_US
dc.identifier.bibrecord.b47209860en_US
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