Off-Balance Sheet R&D Assets and Market Liquidity
Posted: 18 Nov 2003
In this study, we document the information asymmetry effects associated with off-balance sheet (unrecorded) R&D assets using a market microstructure methodology. Collectively, the evidence suggests that a potential harm (lower market liquidity) is associated with the current accounting treatment of R&D spending.
JEL Classification: M4
Suggested Citation: Suggested Citation