Voluntary disclosures of quoted pharmaceutical companies in Sweden and the UK: the development over the period 1984-98

The disclosure behaviour for a sample of quoted Swedish and UK pharmaceutical companies is investigated in the paper. The sample consists of three Swedish (Astra, Gambro and Pharmacia) and three UK (Glaxo, SmithKline Beecham and Wellcome) pharmaceutical companies, whose annual financial reports have been studied over the fifteen-year period 1984-98. The results show that the companies in both countries consistently have provided voluntary disclosures relevant for the assessment of competitive advantages, in particular with regard to research and development activities. Disclosures concerning business growth, dividend policy and earnings persistence, have been more prevalent among the Swedish companies, indicating a stronger concern about stock market investors. Voluntary segmental disclosures have been similar over time, with a reluctance to disclose line-of-business and geographical segment profits. Finally, voluntary disclosures explicitly indicating any accounting measurement biases have been rare.