Title :
Event study on the Hi-tech listed companies reaction to Pre-tax deduction of enterprise R&D expenses
Author :
He, Xuefeng ; Zeng, Bing ; Han, Shuangjiang
Author_Institution :
Chongqing Univ. of Technol., Chongqing, China
Abstract :
The implementation of the Pre-tax deduction of enterprise research and development expenses on December 10, 2008 was considered a key event in encouraging enterprises to carry out R&D activities and regulating the implementation of the pre-tax. This paper investigates how stock prices respond to the announcements by using event study. Examining 113 cases of Chinese Hi-tech listed companies from November 26, 2008 to December 24, 2008, the study evaluates the stock price impact before and after the policy was announced, then we find that the announcement of R&D had strongly positive impacts on stock prices, and increase shareholders´ wealth and the value of the company around the announcement date.
Keywords :
research and development; share prices; taxation; R and D activity; company value; enterprise R and D expense; event study; hi-tech listed company; pretax deduction; pretax implementation regulation; research and development; shareholder wealth; stock price; Companies; Correlation; Economics; Educational institutions; Industries; Investments; Research and development; R&D expenses; event study; reaction;
Conference_Titel :
Information Management, Innovation Management and Industrial Engineering (ICIII), 2012 International Conference on
Conference_Location :
Sanya
Print_ISBN :
978-1-4673-1932-4
DOI :
10.1109/ICIII.2012.6339666
