Innovation, Business Strategies and Stock Returns in Biotechnology Industry

Levan Efremidze


The paper analyzes the impact of small biotechnology firms' innovation and business strategies on their stock returns utilizing event study methodology. These are some of the conclusions supported by the empirical results: (i) firms should focus on regulatory approval of their products; (ii) it is important to recruit individuals and consulting firms with valuable specialized expertise in field; (iii) firms should pursue licensing and manufacturing deals aggressively; and (iv) firms should be highly selective and careful with deals they make for R&D collaboration with scientific community. The implications could be valuable to managers of startup firms in this particular industry and possibly in others, as well as for understanding how financial markets react to innovation announcements.

Full Text:



Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

This journal is licensed under a Creative Commons Attribution 4.0 License.

International Journal of Financial Research
ISSN 1923-4023(Print)ISSN 1923-4031(Online)


Copyright © Sciedu Press

To make sure that you can receive messages from us, please add the '' domain to your e-mail 'safe list'. If you do not receive e-mail in your 'inbox', check your 'bulk mail' or 'junk mail' folders.