FDA approval announcements: Attention-grabbing or event-day misspecification?

Philip A. Hamill; Mark Hutchinson; Quang Minh Nhi Nguyen; Mark Mulcahy

doi:10.1016/j.econlet.2018.06.024

FDA approval announcements: Attention-grabbing or event-day misspecification?

Philip A. Hamill
, Mark Hutchinson
, Quang Minh Nhi Nguyen
, Mark Mulcahy

Cork University Business School

Research output: Contribution to journal › Article › peer-review

Abstract

The attention-grabbing hypothesis has been offered as a behavioural explanation for post-event abnormal returns for FDA drug approval announcements for NYSE listed firms. We show that when event-day mis-specification is accounted for, the market reaction is centred on the event-day and that the increase in firm value is driven by after-market-close approval announcements.

Original language	English
Pages (from-to)	171-174
Number of pages	4
Journal	Economics Letters
Volume	170
DOIs	https://doi.org/10.1016/j.econlet.2018.06.024
Publication status	Published - Sep 2018

Keywords

Attention-grabbing
Event study
FDA
Pharmaceuticals
Research and Development

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10.1016/j.econlet.2018.06.024

https://hdl.handle.net/10468/12099Licence: CC BY-NC-ND

Cite this

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title = "FDA approval announcements: Attention-grabbing or event-day misspecification?",

abstract = "The attention-grabbing hypothesis has been offered as a behavioural explanation for post-event abnormal returns for FDA drug approval announcements for NYSE listed firms. We show that when event-day mis-specification is accounted for, the market reaction is centred on the event-day and that the increase in firm value is driven by after-market-close approval announcements.",

keywords = "Attention-grabbing, Event study, FDA, Pharmaceuticals, Research and Development",

author = "Hamill, \{Philip A.\} and Mark Hutchinson and Nguyen, \{Quang Minh Nhi\} and Mark Mulcahy",

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year = "2018",

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AU - Hamill, Philip A.

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AU - Nguyen, Quang Minh Nhi

AU - Mulcahy, Mark

PY - 2018/9

Y1 - 2018/9

N2 - The attention-grabbing hypothesis has been offered as a behavioural explanation for post-event abnormal returns for FDA drug approval announcements for NYSE listed firms. We show that when event-day mis-specification is accounted for, the market reaction is centred on the event-day and that the increase in firm value is driven by after-market-close approval announcements.

AB - The attention-grabbing hypothesis has been offered as a behavioural explanation for post-event abnormal returns for FDA drug approval announcements for NYSE listed firms. We show that when event-day mis-specification is accounted for, the market reaction is centred on the event-day and that the increase in firm value is driven by after-market-close approval announcements.

KW - Attention-grabbing

KW - Event study

KW - FDA

KW - Pharmaceuticals

KW - Research and Development

UR - https://www.scopus.com/pages/publications/85049348238

U2 - 10.1016/j.econlet.2018.06.024

DO - 10.1016/j.econlet.2018.06.024

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VL - 170

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JO - Economics Letters

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ER -

FDA approval announcements: Attention-grabbing or event-day misspecification?

Abstract

Keywords

Access to Document

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