Accounting for Software Development Costs and the Cost of Capital: Evidence from IPO Underpricing in the Software Industry
研究了软件开发成本的会计处理（资本化或费用化）如何通过影响信息不对称来降低IPO抑价，从而降低资本成本，基于390家软件公司IPO数据的实证支持。
The paper assesses the value of the information contained in the accounting treatment for software development costs (SDC). The assessment is made in the context of the initial public offerings (IPO) market and is based on the effect of the accounting treatment on information asymmetry and hence IPO underpricing. We hypothesize that by sharing information about the probability of recoverability of SDCs and the amortization period, management that capitalizes SDC reduces information asymmetry and thus underpricing. The results, based on a sample of 390 IPOs in the software industry, are consistent with the hypothesis. The findings suggest that capitalization, through its information impact, lowers the cost of capital. Alternative interpretations of the findings are discussed as well.