The Complementary Relationship between Financial and Non-Financial Information in the Biotechnology Industry and the Degree of Investor Sophistication

• Main Authors: SEGAL, Dan, Callen, Jeffrey L., Gavious, Ilanit
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2010
• Subjects: Biotechnology; Financial information; Non-financial information; R&D expenditures; Sophisticated investors; Value-relevance; Accounting; Corporate Finance
• Online Access: https://ink.library.smu.edu.sg/soa_research/799; http://dx.doi.org/10.1016/j.jcae.2010.09.001
• Institution: Singapore Management University

We examine whether financial and non-financial variables, separately and in tandem, are value relevant in explaining market returns, equity values and the degree of investment by sophisticated investors for a sample of drug development companies. Patent counts, number of collaborations and probabili...