Does a Firm's Product-Recall Strategy Affect Its Financial Value? An Examination of Strategic Alternatives During Product-Harm Crises

摘要: Abstract Product-harm crises often result in product recalls, which can have a significant impact on firm's reputation, sales, and financial value. In managing the recall process, some firms adopt proactive strategy responding to consumer complaints, while others are more passive. this study, authors examine of these strategic alternatives firm value using Consumer Product Safety Commission recalls during 12-year period from 1996 2007. Using event study method, show that regardless characteristics, strategies negative effect than passive strategies. An explanation for surprising is stock market interprets as signal substantial losses firm. When proactively manages recall, infers consequence product-harm crisis sufficiently severe had no choice but act swiftly red...