Topic: R&D Management and Expense Categorization Adjustment Behavior under the Incentive Policy for Technological Innovation

Speaker: Dengjin Zheng

Date & Time: 13:30-15:00 Friday, March 31, 2023

Venue: Room 245, Quan Xue Building

Organizer: School of Accounting, Dongbei University of Finance and Economics, P.R. China

Abstract:

The incentive policy for technological innovation aims to encourage enterprise innovation, and there may exist behaviors that induce enterprises to strategically adjust expense categorization in order to seek political incentives. However, correlative academic research are few. This paper finds that enterprises will increase R&D expenses by adjusting the categorization of administrative expenses, mainly through adjusting employee compensation and depreciation/amortization items in the administrative expenses. Furthermore, this paper finds that the behavior of expense categorization adjustment is more pronounced in non-state-owned enterprises and enterprises with earnings pressure, but faces internal and external supervision from auditing and tax collection and management; Proper attribution and presentation of R&D expenses can help suppress the behavior of expense categorization adjustment. In addition, sales expenses and production costs will also be categorized and adjusted to increase R&D expenses. Finally, enterprises with expense categorization adjustment behavior have significantly lower R&D performance although they have obtained tax preferences and government subsidies.

Introduction of Speaker:

Dengjin Zheng, Associate Professor of School of Accounting, Central University of Finance and Economics, P.R. China, Bachelor of Central University of Finance and Economics of 2013, PhD of Tsinghua University of 2017. Published over 30 academic papers in mainstream domestic and international journals such as Journal of Comparative Economics, Journal of Accounting and Public Policy, and Journal of Management World, China Economic Quarterly, Accounting Research, Journal of Financial Research, etc. Presided over the National Natural Science Foundation of China, the Humanities and Social Sciences Program of the Ministry of Education of P.R. China, and the General Program of Beijing Municipal Natural Science Foundation. Won multiple academic awards domestically and internationally, and the doctoral thesis has won the first prize for excellent doctoral thesis at Tsinghua University.

Special Attention:

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