FDA approval announcements: Attention-grabbing or event-day misspecification?
Hamill, Philip A.
Hutchinson, Mark C.
Nguyen, Quang Minh Nhi
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.
Research and Development , FDA , Attention-grabbing , Pharmaceuticals , Event study
Hamill, P. A., Hutchinson, M. C., Nguyen, Q. M. N. and Mulcahy, M. (2018) 'FDA approval announcements: attention-grabbing or event-day misspecification?', Economics Letters, 170, pp. 171-174. doi: 10.1016/j.econlet.2018.06.024