Assistant Professor, J G College of Commerce, Hubballi
Online published on 10 September, 2019.
India is one of the important pharma exporters in international pharma market. US is biggest importer of pharma product from India. Most of the Indian companies are listed on Indian Bores. In recent time United States Food & Drugs Administrator audited extensively on Pharma companies. But regulator and investors of security market have raised concerned over the disclosure made by Pharma companies relating to USFDA observation which could impact the investor's wealth.
This study examines the USFDA Announcements and its Reaction on Selected Indian Pharma Companies. The aim of this study is to investigate the extent to which financial markets incorporate information about USFDA Announcements in the pharmaceutical industry. There is dearth of literature about Indian security market and USFDA reaction. The study is aimed at understanding the stock market effect of USFDA announcements which has not been study in the Indian context. This issue is addressed by means of an event study which analyzes the market reaction of 21 Announcements made by USFDA. The study used event study market model We found that the positive announcement effect was more on the stock price movement and negative announcement impact on stock price movement was less.
Event Study, Market Model
