Skip to main content

Biotechnology industry-physician interaction and OIG guidelines: Evidence from the stock market

Buy Article:

$43.00 plus tax (Refund Policy)

Our article investigates the stock market reaction of the issuance of guidelines by the Office of Inspector General (OIG) to prod biotechnology manufacturers to strengthen self-regulation so as ‘to efficiently monitor adherence to applicable statutes, regulations and program requirements’ in their marketing to physicians. Our empirical results, using standard event study methodology, show significant effect on shareholders’ wealth of 10 large biotechnology firms around various OIG-associated events leading up to the issuance of final guidance. The release of high-level government policy initiative requires the biotechnology industry to review its marketing practices that might be questionable. We provide evidence that suggests that when a public policy initiative significantly affects shareholder wealth, that in turn can impact and alter firm-level behavior without the necessity of adopting a regulation which can be hugely expensive.
No References
No Citations
No Supplementary Data
No Data/Media
No Metrics

Document Type: Research Article

Publication date: 2010-10-01

  • Access Key
  • Free content
  • Partial Free content
  • New content
  • Open access content
  • Partial Open access content
  • Subscribed content
  • Partial Subscribed content
  • Free trial content
Cookie Policy
X
Cookie Policy
Ingenta Connect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more