R&D Accounting and the Tradeoff between Relevance and Objectivity

P. M. Healy

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Article | Journal of Accounting Research | June 2002

R&D Accounting and the Tradeoff between Relevance and Objectivity

by P. M. Healy

Keywords: Research and Development; Accounting;

Format: Print

34 pages

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Citation:

Healy, P. M. "R&D Accounting and the Tradeoff between Relevance and Objectivity." Journal of Accounting Research 40, no. 3 (June 2002): 677, 34 pgs.

About the Author

Paul M. Healy

James R. Williston Professor of Business Administration
Senior Associate Dean for Faculty Development

Accounting and Management

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Case | HBS Case Collection | November 2015 (Revised March 2018)

Air Products' Pursuit of Airgas (A)

Charles C.Y. Wang, Paul M. Healy, Penelope Rossano and Kyle Thomas

This case centers around the Air Products' hostile takeover attempt of Airgas in 2010. Air Products argued that its offer of a 38% premium is generous given Airgas' poor performance, which Air Products attributed to underperforming and entrenched managers at Airgas. On the other hand, Airgas' management argued that the company's recent struggles are cyclical and that Air Products' offer grossly undervalues Airgas' long-run potential. How might Airgas' management credibly communicate its conviction to shareholders? Should Airgas shareholders side with Air Products and accept a certain short term return, or should they side with Airgas' management and accept an uncertain but potentially higher long-term outcome? How should the Airgas board balance its responsibilities to short-term versus long-term shareholders?

Keywords: Acquisition; Business and Shareholder Relations; Industrial Products Industry; Energy Industry; Chemical Industry;

Citation:
Wang, Charles C.Y., Paul M. Healy, Penelope Rossano, and Kyle Thomas. "Air Products' Pursuit of Airgas (A)." Harvard Business School Case 116-024, November 2015. (Revised March 2018.) View Details

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Supplement | HBS Case Collection | November 2015 (Revised March 2018)

Air Products' Pursuit of Airgas (B)

Charles C.Y. Wang, Paul M. Healy and Kyle Thomas

Citation:
Wang, Charles C.Y., Paul M. Healy, and Kyle Thomas. "Air Products' Pursuit of Airgas (B)." Harvard Business School Supplement 116-025, November 2015. (Revised March 2018.) View Details

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Supplement | HBS Case Collection | February 2018

Air Products' Pursuit of Airgas (C)

Charles C.Y. Wang, Paul M. Healy and Kyle Thomas

Citation:
Wang, Charles C.Y., Paul M. Healy, and Kyle Thomas. "Air Products' Pursuit of Airgas (C)." Harvard Business School Supplement 118-080, February 2018. View Details

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R&D Accounting and the Tradeoff between Relevance and Objectivity

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