Prior research shows that stock returns are positive when firms meet or beat analysts' consensus earnings forecasts but negative when they miss. Past studies also show that managers frequently cut research and development (R&D) expenses in order to meet the consensus forecast. This study shows that the stock market penalizes this behavior and exacts a discount to the market reward if beating the forecast requires cutting R&D. However, it is only a partial discount and firms are still better off managing R&D expenditures in the short run. This study also shows that the reductions in R&D are likely temporary, as firms tend to increase R&D spending in the subsequent periods. Investors appear to recognize these short-term cuts and treat them similarly to accruals.

先前的研究表明，当公司达到或超过分析师一致的盈利预测时，股票回报是正的，但当他们没有达到时则为负。过去的研究还表明，管理人员经常削减研发 (R&D) 费用以达到共识预测。这项研究表明，如果超出预测需要削减研发，股票市场会惩罚这种行为，并要求对市场奖励进行折扣。然而，这只是部分折扣，企业在短期内管理研发支出仍然更好。这项研究还表明，研发的减少可能是暂时的，因为企业往往会在随后的时期增加研发支出。投资者似乎认识到这些短期削减，并将其视为应计项目。