Earticle

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

Abstract
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

키워드

저자

• Yonghyun Kwon [ Changwon National University, College of Economics & Business ]
• Seung Hun Han [ Korea Advanced Institute of Science and Technology (KAIST), College of Business, School of Business and Technology Management ]

참고문헌

발행기관

간행물

표지보기 관심저널 등록

• 간행물명

  한국재무학회 학술대회

• 간기

  부정기

• 수록기간

  2006~2024

• 십진분류

  KDC 325 DDC 330