149 NTU Management Review Vol. 31 No. 2 Aug. 2021 Variables Approved Biopharmaceutical Firms Unapproved Biopharmaceutical Firms Biopharmaceutical Industry High-tech Industry Mean Median Mean Median Mean Median Mean Median Total Assets 1,176.30 609.74 2,262.25 1,099.15 1,970.91 917.59 14,979.32 2,342.30 Debt Ratio (%) 19.76 9.64 36.38 34.30 31.86 29.16 44.34 39.60 Net Sales 108.21 21.19 1,442.01 692.92 1,074.53 411.20 17,141.92 2,006.76 ROA -18.23 -12.87 -0.21 8.67 -4.71 5.30 8.53 8.95 Tobin’s Q 4.32 2.00 1.69 1.23 2.24 1.31 1.13 0.86 N 85 85 1,311 1,311 1,817 1,817 11,309 11,309 Note: This table shows the descriptive statistics of the variables for the four groups. Except for observations (N), all numbers represent the mean of the variable. The first group consists of approved biopharmaceutical firms, which are the observations of biopharmaceutical firms at the year of approval (only the event year). Unapproved biopharmaceutical firms are the firmyear observations of biopharmaceutical firms which are not approved by the Biopharmaceutical Act, from 2007 to 2017. Biopharmaceutical industry and high-tech industry are the firm-year observations from 2007 to 2017. All variables are defined in Appendix Table A1. First, in the biopharmaceutical industry, we find that the approved biopharmaceutical firms have smaller total assets, debt ratio, net sales, ROA, but higher Tobin’s Q than unapproved biopharmaceutical firms. In addition, approved biopharmaceutical firms have higher R&D expenditure and R&D intensity, but lower patent numbers and patent adjusted citations than unapproved biopharmaceutical firms. The median of patent and patent adjusted citation is zero, implying that most biopharmaceutical firms do not obtain innovation output such as patents. The median of R&D expenditure and R&D intensity is lower than the mean ones in the biopharmaceutical firms, implying only some or few biopharmaceutical firms may infuse greater R&D expenditures while most biopharmaceutical firms put relatively low amounts of money into R&D activities. Accordingly, compared with unapproved biopharmaceutical firms, approved biopharmaceutical firms tend to be smaller in firm size, leverage, and operating performance, but have higher firm value and higher innovation input but lower innovation output. Table 1 Descriptive Statistics (cont.)
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