Observational analysis shows foreign ownership and R&D intensity influence financial performance in pharmaceutical firms, indicating the need for strategic disclosure.
Key Points
Intellectual capital disclosure and R&D intensity positively affect ROE in pharmaceutical firms.
Foreign ownership positively impacts R&D intensity but has no effect on ROE.
The analysis utilized Structural Equation Modelling to evaluate the relationships among variables.
Findings suggest foreign ownership and intellectual capital disclosure play important roles, but limitations remain due to the study's single-sector focus.