Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments January 27, 2023 erstellt
Beschreibung:
Current R&D expenditures forecast cash-based operating profitability up to three years in the future and sometimes as much as ten years, but do not forecast asset growth. High R&D firms have positive loadings on a cash-based operating profitability factor, and zero alphas. Capitalizing R&D to augment book values with intangible assets is unnecessary for asset pricing, so long as expected profitability is explicitly recognized as a determinant of expected returns