Determinants of R&D Disclosures of Nasdaq-Listed Biotechnology Firms
This study investigates the determinants of discretionary research and development (R&D) disclosures of biotechnology firms listed on the NASDAQ. Our study proposes that firms with higher levels of information asymmetry are more likely to disclose information about R&D than f...
Saved in:
| Main Authors: | , , , |
|---|---|
| Format: | text |
| Language: | English |
| Published: |
Institutional Knowledge at Singapore Management University
2005
|
| Subjects: | |
| Online Access: | https://ink.library.smu.edu.sg/soa_research/76 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| Institution: | Singapore Management University |
| Language: | English |
| Summary: | This study investigates the determinants of discretionary research and development (R&D) disclosures of biotechnology firms listed on the NASDAQ. Our study proposes that firms with higher levels of information asymmetry are more likely to disclose information about R&D than firms with lower levels of information asymmetry. However, proprietary costs thwart the incentives for firms to adopt a policy of full disclosure on R&D. We find results that are consistent with our propositions. Firms that have higher levels of information asymmetry that are proxied by higher growth options, higher concentrations of R&D expenditures and dependence on equity funding (as opposed to debt funding) are found to have higher levels of R&D disclosures. Further, our results show that firms that have lower proprietary costs through patent protection or through having a size advantage disclose more information than other firms. |
|---|