The Department of Accountancy hosted a research workshop on 26 February 2026, featuring Professor Harry Wu, Professor of Department of Accountancy from Lingnan University. The presentation, titled “Unintended Real Effects of Drug Pricing Transparency Laws: Evidence from Pharmaceutical Innovation,” examined the unintended consequences of U.S. Drug Pricing Transparency Laws (DPTLs) amidst rising prescription drug costs and healthcare burdens.
Professor Wu’s analysis, utilising a difference-in-differences approach based on staggered DPTL enactments, uncovered significant adverse impacts on pharmaceutical innovation. The findings revealed that affected firms filed fewer patents and received fewer citations, with more pronounced effects observed in entities dependent on opaque pricing practices, such as those in high-healthcare-spending states, experiencing rapid sales growth, or facing substantial information asymmetry. The study also highlighted reduced profitability, curtailed drug development efforts, and decreased new drug production, highlighting how regulatory uncertainty erodes a critical competitive advantage in the industry.
Faculty members gained profound insights into empirical methodologies for assessing policy impacts on corporate behaviour and innovation. This enriched their expertise in integrating regulatory analysis into accountancy research and teaching, fostering advanced discussions on the trade-offs between transparency and innovation.
This workshop underscores HSUHK’s commitment to scholarly discourse on the real-world implications of regulatory policies in accountancy and healthcare.
