Date of Award
Master of Science (MS)
Economics and Finance
Tyler Brough (Committee Chair)
On January 1, 2006 Medicare part D expanded, giving prescription coverage to many Americans. This event offers an interesting question regarding market efficiency, specifically because Medicare expansion was introduced into congress as far back as 1999. Because Medicare part D affected pharmaceutical drug coverage, this study focuses specifically on securities in the pharmaceutical industry. Following an efficient market hypothesis, we would expect to see significant abnormal returns in the post event window, anticipating the legislations effect on demand within the industry. Results showed significant abnormal returns in post-event window, but not in the pre-event window. The returns in the post-event window were both statically and economically significant. This suggests that most of the abnormal returns stemmed from a reaction after the implementation instead of anticipating the implementation.
Powell, Spencer, "Pharmaceutical Stock Prices around Medicare Part D Expansion" (2021). All Graduate Plan B and other Reports. 1538.
Copyright for this work is retained by the student. If you have any questions regarding the inclusion of this work in the Digital Commons, please email us at .