英文摘要 |
This study investigates the impact of R&D (research and development) capital on innovation output, as measured by the number of drug permit licenses. We also examine whether drug permit license affect the properties of analysts’ earnings forecasts. In addition, we examine whether information transparency affect the relation between drug permit license and analysts’ forecast properties. On the basis of a sample of listed Taiwanese pharmaceutical firms from 2003 to 2011, we find that R&D capital has a positive effect on drug permit license. We further find that firms with higher number of drug permit licenses are associated with less accurate and more dispersed analysts’earnings forecasts. Finally, we document that firms with higher level of information transparency can improve the analysts’ forecast inaccuracy and dispersion associated with higher number of drug permit licenses. |