Is the context of R&D narrative contingent on R&D expenses or R&D intensity? Evidence from European biopharmaceutical companies

Joanna Dyczkowska


Biopharmaceutical industry encompasses R&D-intensive companies which invest huge amounts in basic and clinical studies. Since most of R&D expenditures are expensed as incurred and the time needed to develop new medicines is long biopharmaceutical companies may generate negative financial results for years. Therefore, investors appreciate non-financial information on R&D activities which is more informative. It should be emphasized that this paper contributes to the literature by applying qualitative and quantitative approaches to investigate relations between particular words and establish the contextual meaning of the analyzed texts extracted from 65 annual reports of European biopharmaceutical firms. The study analyses how R&D narratives differed in various groups of biopharmaceutical firms in terms of a discussion context. It also examines whether the way how firms depicted their business within the R&D context was dependent on R&D expenses or R&D intensity levels. The results of the study proves that the companies which disclosed strategic aspects of their R&D activities had higher R&D expenses levels and higher R&D expense growths than the companies with operational R&D narrative context. Moreover, the group that disclosed intensively on R&D accounting policy statistically differed in terms of R&D expenses growth from the group disclosing on R&D operational aspects. The empirical evidence did not supported the conjecture that R&D intensity level might have affected R&D narrative context. The advantage of this study is that it applies an international context on the European level. However, there are also certain limitations, therefore, future research can upgrade and broaden the analyses.
Author Joanna Dyczkowska (BM / DCATMC)
Joanna Dyczkowska,,
- Department of Cost Accounting, Taxes Management and Controlling
Publication size in sheets0.7
Book Soliman Khalid S. (eds.): Education Excellence and Innovation Management: A 2025 Vision to Sustain Economic Development during Global Challenges, 2020, International Business Information Management Association (IBIMA), ISBN 9780999855141
Keywords in EnglishBiopharmaceutical Companies, R&D Expenses, R&D Intensity, R&D Narrative, Textual Analysis
Referenced project[17] Program doskonałości naukowo - badawczej INTEREKON . . Project leader at WUEB: Ewa Stańczyk-Hugiet, , start date 01-01-2019, end date 31-12-2022, in run
Languageen angielski
Dyczkowska_J_Is_the_context_of_R&D.pdf 563,42 KB
Score (nominal)70
Score sourceconferenceList
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UwagaThe project is financed by the Ministry of Science and Higher Education in Poland under the programme "Regional Initiative of Excellence" 2019 - 2022 project number 015/RID/2018/19 total funding amount 10 721 040,00 PLN.
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