The Signaling Effects of the US Food and Drug Administration Fast-Track Designation
| Autor: | George H. Pink, Clark Nardinelli, Kristin L. Reiter, Kathleen L. Miller |
|---|---|
| Rok vydání: | 2016 |
| Předmět: |
050208 finance
Event study methodology Strategy and Management 05 social sciences Advertising Management Science and Operations Research Competitive advantage Food and drug administration Management of Technology and Innovation 0502 economics and business Market data Economics 050207 economics Business and International Management Marketing Fast track Stock (geology) |
| Zdroj: | Managerial and Decision Economics. 38:581-594 |
| ISSN: | 0143-6570 |
| DOI: | 10.1002/mde.2805 |
| Popis: | Pharmaceutical firms are reluctant to disclose proprietary information about a drug's likelihood of approval by the U.S. Food and Drug Administration (FDA) for fear of losing their competitive advantage. Instead, firms may use signals, like the FDA fast-track designation, to indicate to investors the likelihood of a drug's approval. This analysis uses an event study methodology, with stock and market data from the Center for Research in Security Prices. The results show that the fast-track designation is a strong, positive signal to investors (1998–2015), but its strength has markedly decreased over time. Results also show that the signal is strongest for the smallest firms. Copyright © 2016 John Wiley & Sons, Ltd. |
| Databáze: | OpenAIRE |
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