Sturm, Andreas; Dowling, Michael J.; Röder, Klaus - In: Journal of Entrepreneurial Finance, JEF 12 (2007) 2, pp. 23-53
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...