Public Policy and the Efficiency of Capital Markets
- New Horizons in Intellectual Property series
Chapter 5: IPR management, corporate disclosures, and stock market valuations in the pharmaceutical industry
The exploratory study in Chapter 4 set out how pharmaceutical firms conduct their IPR management, and its association with their financial performance. Taking these findings, together with past research showing that IPR contribute to both firm productivity and market values (see Section 2.4), as well as research pointing to the ability of companies to reduce asymmetric information, and thereby also stock market uncertainty (see Section 2.8.3), through voluntary IPR reporting, it seems reasonable to assume that information on firms’ IPR management is value-relevant – that is, under the assumption of informationally efficient stock markets, it should be reflected in share prices. In this chapter, the assumption of informational market efficiency is examined in relation to the relationships identified between IPR management and firms’ financial performance (see Section 4.6). These relationships are operationalised as in Figure 5.1, and examined accordingly. Secondly, previous studies as well as the exploratory interviews reveal that some firms report on their IPR management on a voluntary basis (see Section 4.7).
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.