원문정보
초록
영어
This study examines the negative spillover in biotech industry. Using the event study method, we empirically show the effect of SillaJen’s failure of global phase III clinical trials by investigating stock market reactions. After only six days of announcing the failure, Cumulative Abnormal Returns (CARs) of SillaJen is -90.3%. In this study, we consider about the negative spillover to the other firms. Although SillaJen’s failure cannot affect their own business, CARs of biotech companies are also negatively affected by the R&D failure announcement. Especially, short-term average CARs of research-intensive biotech firms are more negatively affected by the announcement than that of pharmaceutical companies. However, the empirical result suggests that negative expectations about biotech industry spills over into traditional pharmaceutical industry with time.
목차
1. Introduction
2. Literature review and hypothesis development
3. Sample selection and methodology
4. Results
4.1 Stock market abnormal returns linked to the R&D failure
4.2 Cross-sectional analysis of CARs to the R&D failure
4.3 Robustness tests
5. Concluding Remarks
References