R&D intensity within corporate Australia : Evidence from large ASX-listed entities

The article undertakes an empirical study that explores the reporting and disclosure of research and development (R&D) expenditure during the 2020 financial year. The aim of the article is to provide empirical evidence of a link between tax incentives and R&D activity within corporate Australia. The scope of the study is confined to Australia's top 300 ASX/S&P-listed entities within the 2020 financial year. Large-listed entities within the ASX/S&P 300 were chosen since they are the most R&D-active firms within corporate Australia. Our study concluded that R&D activity and intensity does exist within corporate Australia and is highly correlated with overall firm profitability and firm value. The finding is consistent with other international studies that reported a strong correlation between R&D intensity and market capitalisation and earnings