Resumen de Empirical study of the strategic impact of major marketing factors on firms accounting performance in the pharmaceutical industry
Harold W. Lucius, Berhe Habte-Giorgis, Jooh Lee
The purpose of this study is an attempt to explore the impact of various market structure elements (Research and Development/ R&D, Advertising, Capital Intensity, Inventory Turnover, and Firm Size) on the financial accounting performance measurements (Return on Equity (ROE) and Return on Assets (ROA)) in the United States pharmaceutical industry. Firms will be selected and analyzed based on two criteria; those who�s major manufacturing operations is pharmaceuticals and those whose manufacturing operations may include pharmaceuticals, but they represent only a section of the firms manufacturing operations. This includes approximately 332 publicly traded United States firms. The study findings indicate that firm size and R & D intensity are associated significantly and positively with ROA and ROE, whereas advertising intensity and capital intensity are significantly and positively associated with ROE only in the pharmaceutical industry. However, Inventory Turnover is not statistically significant for both ROA and ROE and cannot be used to determine the financial performance of US pharmaceutical firms.
