The impact of the news on the value and trading volume of the USA pharmaceutical companies stocks

Abstract

Intensive development of the global pharmaceutical industry has led to a significant increase in its attractiveness to market investors. At the same time, there is a clear lack of academic work in world financial science that would reveal the specifics of the shares pricing for pharmaceutical companies, including the nature of the influence of various types of news information. The study made it possible to partially solve this problem, significantly expanding the range of available scientific conclusions. Based on a situational and econometric analysis, the authors characterized the influence of a wide range of news information on the dynamics of stock prices and trading volumes, assessed the possibility of insider trading. It is shown that usage of news information by investors can potentially lead to extra profit on market transactions. The findings of the study can be useful to both private and corporate investors, including portfolio managers, in transactions with shares of the world’s largest pharmaceutical companies.