Session 2A: Effects of a New Product's Announcement on a Drug Company's Stock Performance
Session Number
Session 2A: 2nd Presentation
Advisor(s)
Pradeep Chintagunta, University of Chicago
Location
Room A147
Start Date
28-4-2017 10:00 AM
End Date
28-4-2017 11:15 AM
Abstract
Companies often publicly announce their new products to attract customers. Their successfulness is indicated in a change in their stock performance. This investigation studies how the announcement of new drug products affects a company's stock price. I looked at eight different pharmaceutical companies and created a list of the new drugs they produced since 2000. For each drug, I found the FDA approval date and the company's stock prices for thirty days before and after the approval date. The data was compared in multiple ways, and the results show that new drugs announced by a company does affect the stock price. There was a 61.54% of positive impact on the stock prices, indicating that product announcements are effective but not always. Furthermore, there may be other factors that influence a change in the stock prices, so it is unclear whether that specific drug had an effect. The results will help predict a company's stock performance more accurately and thus allow us to see the trends when different factors are applied.
Session 2A: Effects of a New Product's Announcement on a Drug Company's Stock Performance
Room A147
Companies often publicly announce their new products to attract customers. Their successfulness is indicated in a change in their stock performance. This investigation studies how the announcement of new drug products affects a company's stock price. I looked at eight different pharmaceutical companies and created a list of the new drugs they produced since 2000. For each drug, I found the FDA approval date and the company's stock prices for thirty days before and after the approval date. The data was compared in multiple ways, and the results show that new drugs announced by a company does affect the stock price. There was a 61.54% of positive impact on the stock prices, indicating that product announcements are effective but not always. Furthermore, there may be other factors that influence a change in the stock prices, so it is unclear whether that specific drug had an effect. The results will help predict a company's stock performance more accurately and thus allow us to see the trends when different factors are applied.