Do Firms Respond to Peer Disclosures? Evidence from Disclosures of Clinical Trial Results

Vedran Capkun, Yun Lou () and Yin Wang
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Vedran Capkun: GREGH - Groupement de Recherche et d'Etudes en Gestion à HEC - HEC Paris - Ecole des Hautes Etudes Commerciales - CNRS - Centre National de la Recherche Scientifique
Yun Lou: GREGH - Groupement de Recherche et d'Etudes en Gestion à HEC - HEC Paris - Ecole des Hautes Etudes Commerciales - CNRS - Centre National de la Recherche Scientifique
Yin Wang: IJPB - Institut Jean-Pierre Bourgin - Sciences du végétal - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement

Working Papers from HAL

Abstract: 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 important role in the relation between peer disclosures and the firm's own disclosure. In particular, the negative relation is more pronounced when proprietary costs of disclosure are higher. Taken together, our findings provide new evidence on the interplay between peer and own disclosures of non-financial proprietary information.

Keywords: peer disclosure; clinical trial; proprietary cost (search for similar items in EconPapers)
Date: 2020-07-10
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Persistent link: https://EconPapers.repec.org/RePEc:hal:wpaper:hal-02896056

DOI: 10.2139/ssrn.3344942

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