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Full-Text Articles in Clinical Trials
Do Firms Respond To Peer Disclosures? Evidence From Disclosures Of Clinical Trial Results, Vedran Capkun, Yun Lou, Clemens A. Otto, Yin Wang
Do Firms Respond To Peer Disclosures? Evidence From Disclosures Of Clinical Trial Results, Vedran Capkun, Yun Lou, Clemens A. Otto, Yin Wang
Research Collection School Of Accountancy
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 …
Do Firms Respond To Peer Disclosures? Evidence From Clinical Trial Disclosures, Vedran Capkun, Yun Lou, Clemens A. Otto, Yin Wang
Do Firms Respond To Peer Disclosures? Evidence From Clinical Trial Disclosures, Vedran Capkun, Yun Lou, Clemens A. Otto, Yin Wang
Research Collection School Of Accountancy
We examine whether a firm’s decision to disclose non-financial proprietary information depends on peer disclosures of similar information. Using a sample of 5,035 unique clinical trials by U.S. pharmaceutical firms over the 2007-2014 period, we find that the firm is less likely to disclose its own clinical trial results if peers have published clinical trial results pertaining to the same medical condition. Conditional on disclosing clinical trial results, the firm is also less likely to disclose the trial results on time when peers have disclosed their clinical trial results. Our cross-sectional tests suggest that proprietary costs of disclosure play an …