The Research Of Biopharmaceutical Listed Companies' R&D Expenditure Information Disclosure

With the development of society and the continuous improvement of people's living standards,the concept of great health has gradually become popular.As one of the pharmaceutical industries,the biopharmaceutical industry has also been increasingly taken seriously by the country.At the same time,under the background of the new economic normal and the deepening reform of medical policies,research and innovation has become the theme of economic development.R&D innovation is a reflection of a company's core competitiveness,and a driving force for its sustainable development.But the level of R&D and innovation capability is determined by the R&D investment and R&D capabilities of the company.The quality of R&D expenditure disclosure will affect the decision making of investors.Standardizing the R&D expenditure disclosure and improving the quality of R&D expenditure disclosure can let investors make right decisions and promote the healthy development of the capital market.In this paper,we through a combination of theory and case study,firstly reviews literature at home and abroad;then based on the definition of R&D expenditures information disclosure,this paper introduces three theories of this paper,which are signal transmission theory,information asymmetry theory and decision-making usefulness theory related to R&D expenditures information disclosure;and then according to the regulations of R&D expenditure disclosure that enacted by the Securities Regulatory Commission,Ministry of Finance and the stock exchanges of China,this paper selects all the biopharmaceutical companies listed on the GEM as a sample.Based on the cumulative 66 annual reports that released by these listed companies since the time of listing to 2016,this paper collects and compiles the R&D expenditure information disclosure in these annual reports.Firstly,this paper studies the current status of R&D expenditure information disclosure,and then selects ZF company for analysis,comes about the following problems of R&D expenditure information disclosure:(1)biopharmaceutical companies listed on the GEM didn't combine the characteristics of the company's internal research and development projects when it disclosed “specific standards for diving the research stage and development stage of the company's internal research and development projects” and“specific standards for development expenditures that meet the capitalizationconditions”;(2)the disclosure of R&D expenditure data is vague,self-contradiction,incongruous,the unit of amount is inconsistent,and the content of R&D expenditure is not disclosed in detail and is not relevant;(3)the format of R&D expenditure information disclosure is not uniform or standard.The main reasons for these problems are as follows:(1)earnings management;(2)Securities Regulatory Commission and Ministry of Finance have inconsistent regulations for information disclosure,laws and regulations have been revised frequently;(3)companies reluctant to disclose too much to protect trade secrets;(4)financial staffs and auditors have limited professional capabilities.For these reasons,this paper analyzes the cause of these problems.These reasons are as follows:(1)governance measures of earnings management;(2)strengthen the connection and coordination among different laws and regulations,strengthen the application and implementation of the newly revised laws and regulations,regulators should formulate a unified information disclosure format;(3)companies should disclose R&D expenditure information as much as possible under the premise of taking into account the trade secrets;(4)strengthen the training of professional knowledge and improve the professional capabilities of financial staffs and auditors.