FDA Drug Approvals: Time Is Money
We investigated the stock price behavior of public pharmaceutical and biotechnology companies upon approval of a drug by the Food and Drug Administration (FDA). Using event study methodology, we examine the reaction caused by the approval, separating it from the asset price movements caused by other...
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| Veröffentlicht in: | The journal of entrepreneurial finance 2007-12, Vol.12 (2), p.23-54 |
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| container_end_page | 54 |
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| container_title | The journal of entrepreneurial finance |
| container_volume | 12 |
| creator | Sturm, Andreas Dowling, Michael J. Röder, Klaus |
| description | We investigated the stock price behavior of public pharmaceutical and biotechnology companies upon approval of a drug by the Food and Drug Administration (FDA). Using event study methodology, we examine the reaction caused by the approval, separating it from the asset price movements caused by other factors such as market and industry effects. The results are then used to validate the model developed in this article as an alternative to the explanations given by Sharma and Lacey (2004). The results of this study support the Efficient Market Hypothesis, i.e. that the market reacts to the new information quickly and clearly. [PUBLICATION ABSTRACT] |
| doi_str_mv | 10.57229/2373-1761.1026 |
| format | Article |
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| identifier | ISSN: 2373-1761 |
| ispartof | The journal of entrepreneurial finance, 2007-12, Vol.12 (2), p.23-54 |
| issn | 2373-1761 2373-1753 2373-1761 |
| language | eng |
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| source | Alma/SFX Local Collection |
| subjects | Abnormal returns Biotechnology industry Cash flow Drugs Efficient markets FDA approval Hypotheses Pharmaceutical industry Stock exchanges Stock prices Studies |
| title | FDA Drug Approvals: Time Is Money |
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