Open Access Honors Program Thesis
Ronnie Chen, Honors Thesis Advisor, Finance
Biotechnology industries--Finance; Pharmaceutical industry--Finance; Drugs--Testing;
Picture this: someone buys the stock of a firm that is about to announce the results of a drug’s FDA clinical trial the next day. They go to bed that night, imagining the potential of their newly owned business to finally cure a disease that has impacted so many families. They wake up the next morning to find that the firm has lost half of its market value because the drug failed. This is the stark reality that many small investors face: the unpredictability of price movements in response to nonfinancial information being released to the public.
Year of Submission
Department of Finance
University Honors Designation
A thesis submitted in partial fulfillment of the requirements for the designation University Honors
1 PDF file (25 pages)
©2019 Ethan J. Hugstad
Hugstad, Ethan J., "Biotech fever: Market overreaction to FDA clinical trials" (2018). Honors Program Theses. 364.