The value relevance of research and development expenditures information:Empricial evidence from non-financial companies listed in Egyptian Stock exchange.

This study aimed to explore the valuation value of research and development expenditures information by analyzing its impact directly or indirectly on the market value of equity. In addition to examining the effect of the industry type, the firm size, and the Corona pandemic on the valuation value of this information. The study used data from (106) non-financial companies listed on the Egyptian Stock Exchange during the years (2019) before the Corona pandemic, and (2020) after the Corona pandemic, with a total of (212) company year observations. and using the STATA program in analyzing the results and test the study hypotheses.
    The study concluded that there is a direct value for the research and development expenditures information, where these expenditures, whether capitalized or expensed, affect the market value of equity, and that the expensed part is the most influential in the market value. The results also show that there is no indirect value for research and development expenditures, as it does not affect the relationship between book value and earnings with market value. In addition, the results indicated that the value relevance of research and development expenditures was not affected by both industry type and firm size, while it was positively affected by the corona pandemic.
    Accordingly, the study recommends policy makers and international accounting standards setters to standardizing the accounting treatment of research and development expenditures, enhancing their disclosure, and issue clear, detailed, and applicable accounting policies and procedures to capitalize research and development expenditures. As well as companies need to pay attention to research and development expenditures to improve performance and enhance their competitive advantages. In addition, investors, and financial analysts need to realize the importance of information on research and development expenditures as it affects their decisions and estimates regarding the company's ability to innovate and develop in the future.  
    This study contributes to the accounting literature by providing practical evidence from the Egyptian business environment as one of the emerging economies concerning the value relevance of research and development expenditures, which reduces the controversy raised about them and provides an additional explanation for the different reactions in the stock market considering the different methods of disclosure of research and development expenditures.