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PRODID:-//Memento EPFL//
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SUMMARY:MTEI Seminar by Prof. Yuan Ding\, China Europe International Busin
 ess School (CEIBS)
DTSTART:20131212T120000
DTEND:20131212T133000
DTSTAMP:20260427T220041Z
UID:57c7c41705e1b19ea1f1ddb6c06f5e0b2d22234238eddb5a9de50e73
CATEGORIES:Conferences - Seminars
DESCRIPTION:Prof. Yuan Ding\, China Europe International Business School (
 CEIBS)\n"Making sense of financial information by sophisticated users: The
  case of R&D reporting"Abstract\nR&D capitalization is promoted by the int
 ernational accounting standard-setter (the International Accounting Standa
 rds Board - IASB) as a way to help investors better understand the firm’
 s future cash flows\, consistent with the IASB’s claim to favor investor
 s’ information needs. However\, the investors’ preference for relevanc
 e over reliability (and for decision usefulness over stewardship) is assum
 ed more than actually known. In this paper\, we investigate how financial 
 analysts\, theoretically the epitome of “rational and calculative agents
 ”\, make sense of the figures reported under a new standard. Analyzing t
 he R&D accounting policy of major European carmaker Renault over ten years
  (from 2002 to 2011)\, we document that Renault modified its R&D accountin
 g policy from total expensing to capitalization\, consistent with IASB rec
 ommendations and investors’ increasing influence on the company. Based o
 n a content analysis of analysts’ reactions to Renault’s accounting ch
 oices in conference call transcripts\, together with extensive analysis of
  other documentation related to Renault (annual reports and presentations 
 to analysts)\, we find that Renault’s decision was constantly challenged
  by analysts\, and even on occasion considered suspicious. Our findings co
 ntradict the conventional wisdom that investors should prefer R&D capitali
 zation\, and underlines the mechanism through which investors “make sens
 e” of the reported figures.Keywords\nShareholder\, accounting policy\, R
 &D capitalization\, IASB\, Renault\, sensemaking.
LOCATION:EPFL\, ODY 4.03 http://plan.epfl.ch/?zoom=20&recenter_y=5863800.1
 2869&recenter_x=731560.22521&layerNodes=fonds\,batiments\,labels\,informat
 ion\,parkings_publics\,arrets_metro&floor=4&q=ODY_4.03
STATUS:CONFIRMED
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