Pharmaceutical companies’ financial outcomes related to innovation and diversity

Firmino de Oliveira, Carlos Henrique (author), Nascimento Jucá, Michele (author), Domadenik Muren, Polona (author)

Purpose: This study seeks to understand what are the separate and grouped effects of innovation and diversity of the board of directors on the value creation and financial performance of the global pharmaceutical industry. Design/methodology/approach: To this end, a sample of 92 publicly traded companies, located in 24 countries, whose data were obtained between 2015 and 2022, is considered. The hypotheses arising from the objectives of the study are verified by means of a regression with panel data, both for the main and robustness tests Findings: The results indicate that: i. innovation positively (negatively) affects value creation (financial performance), ii. board diversity positively affects value creation, and iii. the moderating effect of diversity in innovation negatively affects value creation. Practical implications: The results can help investors and pharmaceutical companies to better direct their investments in innovation, as well as in the composition of boards that are more appropriate to the industry's profile. Social implications: Regulators and governments are encouraged to evolve by defining policies focused on research in cutting-edge technologies and diversity in corporate leadership. Originality/value: This study differs from the others since it analyzes the mentioned effects in the pharmaceutical industry on a global scale. In addition, it innovates by considering a diversity proxy that combines gender and age aspects.

• Language: English
• Keywords: pharmaceutical industry, innovations, investments, return on equity, innovation, board diversity, value creation, financial performance, pharmaceutical industry
• Work type: Article
• Typology: 1.01 - Original Scientific Article
• Organization: EF - School of Economics and Business
• Publication status: Published
• Publication version: Version of Record
• Year: 2026
• Number of pages: Str. 348-367
• Numbering: Vol. 22, iss. 1
• PID: 20.500.12556/RUL-182126
• UDC: 658.152
• ISSN on article: 1697-9818
• DOI: 10.3926/ic.3251
• COBISS.SI-ID: 275371011
• Publication date in RUL: 24.04.2026

Record is a part of a journal

• Title: Intangible capital
• Shortened title: Intangiblecapital
• Publisher: Intangiblecapital.org
• ISSN: 1697-9818
• COBISS.SI-ID: 522535705

Licences

• License: CC BY-NC 4.0, Creative Commons Attribution-NonCommercial 4.0 International
• Link: http://creativecommons.org/licenses/by-nc/4.0/
• Description: A creative commons license that bans commercial use, but the users don’t have to license their derivative works on the same terms.

Secondary language

• Language: Slovenian
• Keywords: farmacevtska industrija, inovacije, investicije, donosnost kapitala

Projects

• Funder: Other - Other funder or multiple funders
• Project number: 402516/2023-0
• Name: 402516/2023-0

• Funder: ARIS - Slovenian Research and Innovation Agency
• Project number: P5-0128
• Name: Izzivi vključujočega in trajnostnega razvoja v prevladujoči paradigmi ekonomskih in poslovnih znanosti