Date of Award


Degree Type

Creative Project

Degree Name

Master of Science (MS)


Applied Economics

Committee Chair(s)

Veronica Pozo


Veronica Pozo


Devon Gorry


DeeVon Bailey


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.