Determinants of R&D Disclosures of Nasdaq-Listed Biotechnology Firms
This study investigates the determinants of discretionary research and development (R&amp;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&amp;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&amp;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&amp;D expenditures and dependence on equity funding (as opposed to debt funding) are found to have higher levels of R&amp;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.
Research and development disclosures, Financial reporting, NASDAQ
Accounting | Corporate Finance
Corporate Reporting and Disclosure
American Accounting Association Annual Meeting
City or Country
San Francisco, California, USA
TAN, Pearl Hock Neo; GAN, Peck-Yen; LOW, Calvin; and Chim, Wai-Kay.
Determinants of R&D Disclosures of Nasdaq-Listed Biotechnology Firms. (2005). American Accounting Association Annual Meeting. Research Collection School Of Accountancy.
Available at: http://ink.library.smu.edu.sg/soa_research/76