French context provides an experimental field for studying the value relevance of R&D capitalization, because both accounting treatments of R&D costs are allowed. Given this context, we examine the value relevance of R&D accounting treatment using two approaches and find that capitalized R&D bears useful information to investors in regards to stock returns and stock prices.
JENY, A. and JEANJEAN, T. (2003). Value Relevance of R&D Reporting : A Signaling Interpretation. ESSEC Business School.