Date of Award
12-2017
Degree Type
Creative Project
Degree Name
Master of Science (MS)
Department
Applied Economics
Committee Chair(s)
Veronica Pozo
Committee
Veronica Pozo
Committee
Devon Gorry
Committee
DeeVon Bailey
Abstract
Several studies have been conducted to evaluate the cost of meat and poultry product recalls to food firms. The goal of this analysis is to formally test whether or not subsequent recalls are associated with less negative stock price returns, and whether or not there is a difference in the magnitude of returns between a first, second, and third or more recall. This is completed through an event study analysis. Results indicate that recurring recall events affecting a firm within 12 months of the first recall incident are indeed associated with less impactful negative outcomes. On average, initial recall events are associated with short-term reductions in shareholder wealth of up to $236 million, 5 days after the recall announcement, while no negative reactions are found for subsequent recall events after the initial recall announcement date.
Recommended Citation
Thomas, Briana, "Market Learning After Recurrent Meat and Poultry Recalls" (2017). All Graduate Plan B and other Reports, Spring 1920 to Spring 2023. 1116.
https://digitalcommons.usu.edu/gradreports/1116
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