Proceedings of the 2022 3rd International Conference on Management Science and Engineering Management (ICMSEM 2022)

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Research on the Impact of R&D Expenditure Reduction on Corporate Performance

Under the Real Earnings Management Motivation

Authors
Deyu Liu1, *
1School of Law and Economics, Wuhan University of Science and Technology, Wuhan, 430065, China
*Corresponding author. Email: deyuliu@foxmail.com
Corresponding Author
Deyu Liu
Available Online 15 December 2022.
DOI
10.2991/978-94-6463-038-1_32How to use a DOI?
Keywords
Real Earnings Management; R&D Expenditures; Company Performance; Enterprise Life Cycle
Abstract

In order to maximize the benefits, listed companies will carry out enterprise management through more hidden real earnings management methods, and reducing R&D expenditure is an important method of real earnings management. In this paper, the listed companies on China’s Gem Market from 2016 to 2020 are selected as a research sample, and the regression analysis of the measurement model is carried out by using Stata. It examined the impact of reduced R&D investment on the company’s future operating performance under the background of real earnings management motivation, and further analysed the relationship between real earnings management behaviour and company performance in different enterprise life cycles. The study found that the reduction of R&D expenditure by listed companies for the real earnings management motive will have a negative impact on the company’s future operating performance as a whole. And it has a significant negative impact on companies in the growth and recession periods, while for mature companies, there is a non-significant positive impact. This provides a reference for corporate management of companies at different stages.

Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2022 3rd International Conference on Management Science and Engineering Management (ICMSEM 2022)
Series
Atlantis Highlights in Engineering
Publication Date
15 December 2022
ISBN
978-94-6463-038-1
ISSN
2589-4943
DOI
10.2991/978-94-6463-038-1_32How to use a DOI?
Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Deyu Liu
PY  - 2022
DA  - 2022/12/15
TI  - Research on the Impact of R&D Expenditure Reduction on Corporate Performance
BT  - Proceedings of the 2022 3rd International Conference on Management Science and Engineering Management (ICMSEM 2022)
PB  - Atlantis Press
SP  - 345
EP  - 358
SN  - 2589-4943
UR  - https://doi.org/10.2991/978-94-6463-038-1_32
DO  - 10.2991/978-94-6463-038-1_32
ID  - Liu2022
ER  -