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

Copyright Owner and License

Authors

Additional URL

https://doi.org/10.2308/TAR-2019-0137

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