Intangible Capital | 2026
Authors: Oliveira C.H.F.D.; Juca M.N.; Muren P.D.
DOI: 10.3926/IC.3251
Journal: Intangible Capital
Year: 2026
Publisher: OmniaScience
Document Type: Article
Open Access: All Open Access; Gold Open Access; Green Open Access
Cited by: 0
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 public companies located in 24 countries was analyzed. Their data were obtained from 2015 to 2022. The hypotheses arising from the objectives of the study are verified by means of a panel data regression with fixed effects and year dummies, both for the main and robustness tests. The innovation proxy is operationalized by the ratio of research and development expenses to operating revenue. In turn, the diversity proxy is obtained by Bloombergs board of directors diversity score, which includes age and gender features. 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 industrys 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. © (2026), (OmniaScience). All rights reserved.
Board diversity; Financial performance; Innovation; Pharmaceutical industry; Value creation