EMPIRICAL CALCULATION OF ASSET VALUE COMING FROM RESEARCH AND DEVELOPMENT EXPENSES: CASE OF FRENCH RESEARCH, DEVELOPMENT, TESTING SERVICES COMPANIES

The purpose of our study is to examine the utilization of R&D expenses in knowledge‐intensive French companies in the manner of development of future assets recognized and accepted by the current national accounting framework. We included 41 French research, development, testing services companies in a empirical calculation of research asset value. The finanicial information was obtained from the financial database „Point Risk“ for the purpose of addressing the main research question. The model used in this study is the Research Asset Value Calculation developed by Damodaran (2009). This model investigates the process of capitalization of R&D expenses within French companies. French research, development, testing services companies capitalize its R&D expenses into concrese assets. The main contribution of our research is the examination of the R&D expenses and its recognition as a final performance. This study presents the first confirmation of capitalization of R&D expenses within company's value.