Archive for the ‘Recall Statistics & Research’ Category

The Effect of Product Recalls on Stock Performance (Summary)

In my paper, The Effect of Product Recall on Stock Performance, I discuss findings with regard to how much a company’s stock price changes with the announcement of a product recall. I also discuss studies that show how negative impacts can be mitigated. The full text of the post can be found by clicking the [...]

Company Costs of a Product Recall: Incentives to Fix or Ignore Recall Effectiveness Problems (Full Post)

Company Costs of a Product Recall: Incentives to Fix or Ignore Recall Effectiveness Problems (Full Post)

There are numerous costs involved in conducting a product recall.  Many of these costs vary greatly depending on factors such as the type of product being recalled, the cost and price-point of the product, the number of units recalled, the geographic location of the companies involved and even the demographics of the end-user.  This article [...]

The Effect of Product Recalls on Stock Performance (Full Post)

A 2005 statistical study published in the Quarterly Journal of Business and Economics analyzed the security prices of non-automotive recalls following the announcement of the product recall in the Wall Street Journal (WSJ).[1] [2] The study looked at a sample of 269 product recalls from 1984 through 2003 and reported the mean abnormal returns (MAR) [...]