We analyze, theoretically and empirically, how salience affects the market reaction to innovation announcements …, there will be a stock return drift following innovation announcements, with the former magnitude increasing and the latter …

We analyze, theoretically and empirically, the implications of salience on innovation announcements in the … biopharmaceutical industry. We hypothesize that equity market investors are more likely to pay attention to an innovation announcement … that is more salient: thus, investors pay more attention to FDA drug approvals of pharmaceuticals compared to that paid to …