Abstract
The disclosure behavior for a sample of quoted Swedish and UK pharmaceutical companies is investigated. The sample consists of 3 Swedish (Astra, Gambro and Pharmacia) and 3 UK (Glaxo, SmithKline Beecham and Wellcome) pharmaceutical companies whose annual financial reports have been studied over the 1984-1998 period. 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. Voluntary segmental disclosures have been similar over time, with a reluctance to disclose line-of-business and geographical segment profits. Voluntary disclosures explicitly indicating any accounting measurement biases have been rare.