EconStor >
Academy of Entrepreneurial Finance (AEF), Montrose, CA >
Journal of Entrepreneurial Finance >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/55927
  
Title:FDA drug approvals: Time Is money! PDF Logo
Authors:Sturm, Andreas
Dowling, Michael J.
Röder, Klaus
Issue Date:2007
Citation:[Journal:] Journal of Entrepreneurial Finance, JEF [ISSN:] 1551-9570 [Volume:] 12 [Year:] 2007 [Issue:] 2 [Pages:] 23-53
Abstract: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.
Document Type:Article
Appears in Collections:Journal of Entrepreneurial Finance

Files in This Item:
File Description SizeFormat
663299608.pdf378.03 kBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:http://hdl.handle.net/10419/55927

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.