Exploring management strategies to optimise corporate value

Purpose This paper explores effective management strategies to optimise corporate value in the pharmaceutical industry. It uses key variables such as research and development (R&D), board gender diversity, and environmental, social and governance (ESG) factors. Design/methodology/approach Given the dynamic and multifaceted nature of corporate innovation and its impact on performance, 53 pharmaceutical companies were examined using partial least squares structural equation modelling (PLS-SEM). This methodology enabled exploration of causal and predictive relationships in corporate value and management. Findings Greater investment in R&D drives innovation and future growth. Despite the short-term financial impact, R&D investment reflects a strategic emphasis on long-term growth and sustainability in the pharmaceutical industry. Management effectiveness mediates the effects of gender diversity on increasing corporate value. The ESG score is the least relevant variable for assessing the value of pharmaceutical companies. It contributes to improving management practices but is not fully considered in the overall corporate value of a company taking into account the selected database. Practical implications Pharmaceutical companies can use these findings to adjust and optimise their investment in R&D. They can thus direct their strategies towards more ethical and sustainable practices, thereby enhancing effectiveness and competitiveness. The combination of these elements provides an opportunity to develop integrated management strategies. Originality/value This research explores innovative strategies to enhance corporate value, emphasising the pivotal role of R&D and ESG factors. It reveals the intricacies of the pharmaceutical landscape and provides solutions for organisational strategy.