Concentrated Announcements on Clustered Data: An Event Study on Biotechnology Stocks

[en] In spring 2000, three events--two political statements by Bill Clinton and Tony Blair and a breakthrough announcement by Celera Genomics--had a major impact on biotechnology stocks. We analyze their effects over a comprehensive set of biopharmaceutical companies, using a composite return-generating model with an industry-specific patent-based factor. Our results show that stocks can be clustered according to their responsiveness to political and scientific events. Furthermore, we emphasize different impacts on the market value of intangible assets for each cluster, suggesting that growth options are valued with different criteria for therapeutics, and technology-based subsectors.

Disciplines :

Finance

Author, co-author :

Bastin, Véronique

Hübner, Georges ; Université de Liège - ULiège > HEC-Ecole de gestion : UER > Gestion financière

Language :

English

Title :

Concentrated Announcements on Clustered Data: An Event Study on Biotechnology Stocks

Publication date :

2006

Journal title :

Financial Management

ISSN :

0046-3892

eISSN :

1755-053X

Publisher :

Financial Management Association, Tampa, United States - Florida

Volume :

Issue :

Pages :

129-157

Peer reviewed :

Peer reviewed

Available on ORBi :

since 07 January 2010

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75 (5 by ULiège)

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1 (0 by ULiège)

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