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China adopted its new Accounting Standards for Business Enterprises No. 6 in 2007, which substantially converges with the International Financial Reporting Standards. It stipulates that firms operating in China shall capitalize development costs provided specific criteria have been met. This paper aims to examine the effects of the new accounting policies of R&D on the value-relevance and stock performance of 36,299 Chinese firms-years from 2007 to 2020.

A comprehensive multi-stage analysis was conducted. Multiple linear regressions were performed on the pooled cross-sectional time-series total R&D, capitalized expenditures, expensed costs and other key financial factors to test for the effects of R&D on the stock prices, contemporaneous stock returns and subsequent stock returns for the full sample, capitalizer sample and expenser sample, respectively.

First, majority of Chinese firms (about 80% of those reported) elect to adopt expensing R&D approach, while about 20% deploys capitalization treatment. Second, key attributes such as size, profitability, leverage and R&D intensity are highly associated with capitalization propensity. Third, current capitalization affects the contemporaneous stock prices and stock returns (priced-in) with yearly volatility. Finally, intertemporal association exists between firms’ expensing costs and subsequent returns due to a delayed reaction.

As the world largest emerging economy, the results show that research and development information adds value, and capitalizers outperforms expensers in the area of stock performance. This strategy works irrespectively of economic development stage or capital market maturity. The findings call for more capitalization.

This study aims to investigate the influence of illegitimate tasks on frontline hospitality employees’ in-role and extra-role performance via the mediating role of thriving at work and the moderating role of work centrality.

Survey data were collected from 264 supervisor–subordinate pairs from three hotels in Jiangsu, China and analyzed using structural equation modeling.

Illegitimate tasks negatively affected hospitality employees’ in-role and extra-role performance by inhibiting thriving at work. In addition, work centrality strengthened the impact of illegitimate tasks on thriving at work and their indirect effect on in-role and extra-role performance via reduced thriving at work.

First, managers should avoid assignment of unnecessary tasks. However, many tasks that could be viewed as illegitimate must still be performed; the results demonstrate that managers must be mindful of how such tasks are assigned and to whom, and should take steps to minimize and/or manage potential negative reactions to illegitimate tasks.

This study enriches the illegitimate tasks literature by examining its influence on the frontline hospitality employees’ in-role and extra-role performance and highlights a novel mediating mechanism linking illegitimate tasks and employee performance using conservation of resource theory. In addition, this reveals the novel moderating effect of work centrality.