Management Decision
2019

Product recalls, lobbying, and firm value

Blake Rayfield, Omer Unsal

Corporate Finance

Abstract

The paper uses a unique, hand-collected data set of Food and Drug Administration (FDA)-approved products to understand the effect of lobbying on the product market. The authors gather total 86,462 FDA labels including drug patents, drugs, pre-market approvals and medical devices and test the relationship between lobbying and future firms’ product submissions.