Abstract:Based on the research and development expenditure accounting policy choice as the entry point, this study systematically investigates the influence of the R&D expensing on the pricing mechanism of private placement of new shares, and the random boundary analysis method is used to conduct empirical analysis on a-share listed companies in Shanghai and Shenzhen that implemented private placement from 2008 to 2018. The results show that: The higher the proportion of the R&D expensing, the greater the degree of undervaluation of issue pricing, and this mechanism is mainly realized through the potential path of negative accrual earnings management activities. The inhibitory effect of the R&D expensing on issue pricing of private placement of new shares is more significant in non-state-owned enterprises; the increase of the proportion of major shareholders’ subscription will strengthen this inhibitory effect.