Determinants and quality of R&D disclosures in annual reports of biotechnological companies
AbstractIncreasing number of innovations commercialised and intellectual property rights granted determine strategic and knowledge leadership of biotech companies on a global market. Due to a long-term character of R&D projects carried out by biotech companies tangible effects of R&D initiatives become visible at the end of the project, indeed. Therefore, biotech companies should disclose qualitative R&D information in order to inform their stakeholders on what have actually happened in the reported year. Based upon the existing good practices of voluntary disclosures outlined by FASB, the results of a text mining analysis of annual reports of European biotech companies, and finally the regulatory requirements imposed by the Polish Accounting Act, this paper aims at the assessment of R&D disclosure quality of Polish biotech companies. It examines correlations between R&D disclosure index and financial and non-financial measures. Furthermore, it analyses statistical differences between itemized groups of companies reflecting various disclosure levels. The major findings document that the majority of the examined companies reported to a limited extent on R&D-related issues or did not provide any R&D disclosures. Interestingly, the research results indicated that the share of medical professionals in the management board strongly fostered the quality of R&D disclosures. Moreover, companies with the higher financial liquidity and MV/BV ratio were more eager to disclose R&D information
|Publication size in sheets||0.85|
|Book||Sichel Ricardo Luiz (eds.): Intellectual Property Rights and Management Accountability: A new perspective, 2017, Gramma Livraria e Editora, ISBN 978-85-5968-122-2, 199 p.|
|Keywords in English||biotechnological companies, R&D disclosure|
|Score||= 5.0, 02-07-2019, MonographChapterAuthor|
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