R&D-based earnings management, accounting performance and market return: Evidence from national-recognized enterprise technology centers in China Available to Purchase

– The purpose of this paper is to provide a theoretical support for managers and investors and help them to identify corporate investment decisions on research and development (R&D) rationally.

– Grouping and regression analysis are employed in the research.

– The paper finds that managers in firms with medium accounting performance and at the border of profit target are prone to manage earnings by real R&D transactions, namely reducing R&D expenditures.

– The conclusions are of great significance for innovation promotion in China.