Publication Type
Journal Article
Version
submittedVersion
Publication Date
5-2023
Abstract
Using data on the registration of clinical trials and the disclosure of trial results, we examine how firms respond to peer disclosures. We find that firms are less likely to disclose their own trial results if the results of a larger number of closely related trials are disclosed by their peers. This relation is stronger if the firms face higher competition (as measured by the number of competing trials). It is weaker if the firms are further along in their research than the peers (as measured by the trials’ phase) and if the peers’ disclosures convey more negative news (as measured by the firms’ stock price reaction). We also find that firms are more likely to abandon ongoing trials if a larger number of peers disclose the results of closely related trials. Additional tests suggest that this real effects channel does not drive the impact on the firms’ disclosure decisions.
Keywords
disclosure decisions, peer disclosures, clinical trials
Discipline
Accounting | Clinical Trials
Research Areas
Corporate Reporting and Disclosure
Publication
Accounting Review
Volume
98
Issue
3
First Page
71
Last Page
108
ISSN
0001-4826
Identifier
10.2308/tar-2019-0137
Publisher
American Accounting Association
Citation
CAPKUN, Vedran; LOU, Yun; OTTO, Clemens A.; and WANG, Yin.
Do firms respond to peer disclosures? Evidence from disclosures of clinical trial results. (2023). Accounting Review. 98, (3), 71-108.
Available at: https://ink.library.smu.edu.sg/soa_research/1979
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.2308/TAR-2019-0137