| Summary: | 碩士 === 元智大學 === 財務金融學系 === 94 === This research are mainly discussing about the influence of human capital, compensations, technical innovations, and corporate governance in biotechnology industry. We find that although R&D, salary and bonus expense may not increase accounting earnings, market investors still consider these expenses as good factors of future return. Besides, R&D expense increases the volatility of stock return along with the possibility of patent citation. The compensation warded to CEO is divided into several parts, salary, cash bonus, and options, and they all make stock returns more volatile. The compensations however, will give managers intensive to pay more efforts in researching. In the opinion of corporate governance, the academic background of CEO is positive relative to performance of biotech companies, and the percentage of shares held by board of directors will improve earnings and decrease the volatility of firms.
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