Purpose – This paper seeks to address the value relevance of summary accounting measures and fundamental income statement variables in the market valuation of biotech firms. Design/methodology/approach – A biotech firm's stock price was related to its underlying financial accounting...

We examine how board co-option, defined as the fraction of the board comprising directors appointed after the CEO assumed office, is related to clawback adoption. We find that co-opted boards have a lower probability of adopting clawback provisions. Further, the negative association between...