A Systems View Across Time and Space
Table 4 Hypothesis testing results
From: On valuing biopharmaceutical product pipelines: an effectuation model and evidence
Hypotheses | Results |
|---|---|
H1: Biopharmaceutical companies with higher absolute R&D expense will have higher performance in terms of growth in revenues, net income, valuation, and Price-Earning (PE) multiples relative to peer competitors. | Supported |
H2: Biopharmaceutical companies with higher R&D expense as percent (%) of revenues will have higher performance. | Supported |
H3: Biopharmaceutical companies with higher pipeline valuation as a percent of overall valuation will have higher performance. | Not supported |
H4: Effectuation dimensions will have higher predictive power than the traditional discounted value of present cash flow models. | Supported |