[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
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