TY  - JOUR
AU  - Golec,Joseph
AU  - Vernon,John
TI  - What's the "Interest" in FDA Drug Advisory Committee Conflicts of Interest?
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 14932
PY  - 2009
Y2  - April 2009
UR  - http://www.nber.org/papers/w14932
L1  - http://www.nber.org/papers/w14932.pdf
N1  - Author contact info:
Joseph Golec
Department of Finance
2100 Hillside Road
Storrs, CT 06269
E-Mail: Joseph.Golec@business.uconn.edu

John Vernon
University of North Carolina at Chapel Hill
Department of Health Policy & Management
1101C McGavran-Greenberg Hall
Chapel Hill, NC 27599-7411
Tel: 919/966-8930
E-Mail: no email available
AB  - Food and Drug Administration (FDA) drug advisory committee members sometimes have financial interests tied to drug companies. Congress and the public have become concerned that these financial interests lead to conflicts of interest. They conclude that the conflicts bias committee recommendations, and lead to unsafe or ineffective drugs being approved for public consumption, or, conversely, delays in approval of safe and effective drugs. Our paper provides empirical evidence, based on an event study methodology, that advisory committee meetings lead to weak or statistically insignificant effects on stock prices and hence equity values of regulated companies assumed to be affected by the particular matters coming before committee meetings.
ER  -