The impact of the recognition of high-tech enterprise on R&D disclosure

Abstract The Administration of Recognition of High-tech Enterprises, a monitoring program for high-tech entrepreneurs, administers China’s most critical policy for reducing taxes to incentivize research and development (R&D), which also impacts disclosure. This study examines how this recognitio...

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Main Authors: Yuanxing Wan, Ziyue Wang, Jinrui Chen, Yuting Jiang
Format: Article
Language:English
Published: Springer Nature 2025-05-01
Series:Humanities & Social Sciences Communications
Online Access:https://doi.org/10.1057/s41599-025-04735-w
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author Yuanxing Wan
Ziyue Wang
Jinrui Chen
Yuting Jiang
author_facet Yuanxing Wan
Ziyue Wang
Jinrui Chen
Yuting Jiang
author_sort Yuanxing Wan
collection DOAJ
description Abstract The Administration of Recognition of High-tech Enterprises, a monitoring program for high-tech entrepreneurs, administers China’s most critical policy for reducing taxes to incentivize research and development (R&D), which also impacts disclosure. This study examines how this recognition has influenced high-tech enterprise R&D disclosure. Using a difference-in-differences (DID) design, the study found that authentic high-tech firms disclose more detailed R&D information. In contrast, pseudo-high-tech firms inflate their R&D investments by manipulating accounting items and business activities to qualify for recognition and its associated preferential policies, resulting in vague and less frequent R&D disclosures. Additional tests showed that the positive impact of recognition on R&D disclosure is more significant for authentic high-tech firms when information demand is higher. However, pseudo-high-tech firms disclosed much lower-quality R&D information, especially when their managers prioritized rent extraction. This documented effect of high-tech enterprise recognition provides empirical evidence to reveal the dynamics of the high-tech disclosure dispute on industrial policy, while also offering theoretical and practical implications for business and public policy.
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spelling doaj-art-cb572fa3c9a64ada8439f955cfdf9d7f2025-08-20T01:49:43ZengSpringer NatureHumanities & Social Sciences Communications2662-99922025-05-0112111510.1057/s41599-025-04735-wThe impact of the recognition of high-tech enterprise on R&D disclosureYuanxing Wan0Ziyue Wang1Jinrui Chen2Yuting Jiang3School of Accounting, Zhejiang Gongshang UniversitySchool of Accounting, Zhejiang Gongshang UniversitySchool of Business Administration (MBA), Zhejiang Gongshang UniversitySchool of Accounting, Zhejiang Gongshang UniversityAbstract The Administration of Recognition of High-tech Enterprises, a monitoring program for high-tech entrepreneurs, administers China’s most critical policy for reducing taxes to incentivize research and development (R&D), which also impacts disclosure. This study examines how this recognition has influenced high-tech enterprise R&D disclosure. Using a difference-in-differences (DID) design, the study found that authentic high-tech firms disclose more detailed R&D information. In contrast, pseudo-high-tech firms inflate their R&D investments by manipulating accounting items and business activities to qualify for recognition and its associated preferential policies, resulting in vague and less frequent R&D disclosures. Additional tests showed that the positive impact of recognition on R&D disclosure is more significant for authentic high-tech firms when information demand is higher. However, pseudo-high-tech firms disclosed much lower-quality R&D information, especially when their managers prioritized rent extraction. This documented effect of high-tech enterprise recognition provides empirical evidence to reveal the dynamics of the high-tech disclosure dispute on industrial policy, while also offering theoretical and practical implications for business and public policy.https://doi.org/10.1057/s41599-025-04735-w
spellingShingle Yuanxing Wan
Ziyue Wang
Jinrui Chen
Yuting Jiang
The impact of the recognition of high-tech enterprise on R&D disclosure
Humanities & Social Sciences Communications
title The impact of the recognition of high-tech enterprise on R&D disclosure
title_full The impact of the recognition of high-tech enterprise on R&D disclosure
title_fullStr The impact of the recognition of high-tech enterprise on R&D disclosure
title_full_unstemmed The impact of the recognition of high-tech enterprise on R&D disclosure
title_short The impact of the recognition of high-tech enterprise on R&D disclosure
title_sort impact of the recognition of high tech enterprise on r d disclosure
url https://doi.org/10.1057/s41599-025-04735-w
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