Product recalls, corporate social responsibility, and firm value: Evidence from the Chinese food industry

Kong, Dongmin; Shi, Lu; Yang, Zhiqing

doi:10.1016/j.foodpol.2018.11.005

Cited by 56 publications

(36 citation statements)

References 24 publications

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“…In terms of the food supply chain sector, which is always a difference between the food industry and other industries since the characteristics of food products such as food quality, safety, storage condition, and shelf life as well as the process of transporting between warehouses, and stores to end customers [5,31]. These are factors that can easily occur in incidents related to food goods.…”

Section: Literature Reviewmentioning

confidence: 99%

“…The idea of conducting corporate social responsibility (CSR) has undergone phenomenal growth in recent decades and has been rolled out in diverse sectors globally, such as the European banking industry [1], Vietnamese coffee sector [2], Jordanian pharmaceutical industry [3], the U.S. restaurant industries [4], Chinese food industry [5], and so on. Indeed, this positive signal has attracted increasing interest from corporations due to the advantages of adopting CSR into their business strategy [6][7][8].…”

Section: Introductionmentioning

confidence: 99%

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Two-Stage Production System Pondering upon Corporate Social Responsibility in Food Supply Chain: A Case Study

et al. 2021

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Corporate social responsibility (CSR) has witnessed remarkable attention in academic studies as well as being widely conducted in different industries globally. This specific case was chosen as one of the biggest dairy companies that may be represented for Vietnam dairy supply chain management. This research aims to integrate CSR initiatives into food supply chain management to clarify the optimal replenishment policy, paying close attention to the relationship between midstream manufacturers and final customers. The classical economic production quantity model has been employed, relying on the two-stage assembly production system. The three parameters that contribute to the total profit formulation that have been considered consist of the social charity amount for per unit selling, the unit wholesale price of the manufacturer, and the return rate of used goods from the customer. The study has stressed that there is a significant impact from implementing CSR initiatives on the enterprise’s inventory policy that leads to enhance the firm’s financial performance.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Two-Stage Production System Pondering upon Corporate Social Responsibility in Food Supply Chain: A Case Study

et al. 2021

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“…In equation (2), PT(x, p; y, 1 − p) denotes the expected value over binary monetary outcome x and y with corresponding probabilities p and 1 − p, respectively. Furthermore, a two-part power function assigns a value for gains (x > 0) and losses (x < 0) separately:…”

Section: Conceptual Frameworkmentioning

confidence: 99%

“…Food safety governance is a common issue all over the world [1]. In recent years, the problem of food quality and safety in China is particularly severe [2]. China's food safety incidents, such as Melamine milk powder, lean meat powder, Sudan red salted duck egg, and sick and dead pigs entering the market (the first three events involved the illegal addition of the harmful raw materials, the substances that can promote the growth of lean meat, and the carcinogenic chemicals.…”

Section: Introductionmentioning

confidence: 99%

Risk Attitude, Contract Arrangements and Enforcement in Food Safety Governance: A China’s Agri-Food Supply Chain Scenario

Hou

2020

IJERPH

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Frequent food safety problems in recent years have seriously affected China's public health. The complexity, diversity, and technicality of food safety problems are intertwined, which constantly promotes the Chinese government and the food industry to explore effective food safety governance mechanisms. As the dominant form of vertical coordination in agri-food supply chain, contract farming is conducive to promoting farmers' safe production behavior, improving food quality and safety, and ensuring public health. However, the low contract performance rate seriously restricts the effect of contract farming on reducing the risk of food safety in China. This paper empirically investigates the role of farmers' risk attitude and contract arrangements in their enforcement. The data is derived from a household survey and economic field experiment of fruit farmers participating in contract farming in Anhui and Jiangsu provinces of China. We measure farmers' risk attitude by using an economic field experiment, and examine how risk attitude and contract arrangements affect contract enforcement with a probit model. The results show that contract enforcement is significantly (1% level) influenced by farmers' risk attitude. Farmers with greater risk aversion and loss aversion and farmers who are more accurate in evaluating probability information are more likely to fulfill the contract. Additionally, most contract arrangements have a significant effect on contract enforcement at the 5% level. Contract arrangements with floor pricing, bonus, and long duration are related to a higher rate of farmers' contract performance. Furthermore, the factors influencing contract enforcement differ based on the levels of farmer' risk attitude. The findings of the study may be conducive to formulating relevant agricultural policy to influence farmers' decision-making and thus improving food safety and ensuring public health. of 16is fixed pricing. We expect that the floor pricing mechanism is associated with a high rate of contract performance because it provides farmers with income guarantees [14]. The variable duration denotes the length of the contract between the contractor and farmers. Farmers who sign long-term contracts with the contractor tend to consider the adverse effects of contract default from their own long-term interests; the longer the duration of the contract, the greater the losses from defaulting contract. Thus, we assume that contract duration is positively related to the probability of contract performance. The variable bonus is binary and has a value of 1 if the contractor offered a bonus to farmers who complied with the contract and 0 otherwise. We expect that contract terms with a bonus are associated with a high rate of contract performance, because such bonus clause will increase the farmers' income and improve the enthusiasm of farmers cooperating with contractor [18].In addition to risk attitude and contract arrangements, contract enforcement may be influenced by other factors such as demographic and socio-econom...

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“…Previous studies have shown that the results of most studies on automobiles have been of little significance (Shin et al, 2012;Zhao et al, 2013;Singh, 2018), and that the food industry (Seo et al, 2013, Kong et al, 2019 and the chemical industry (Makino, 2016) have become more significant. Therefore, it is judged that the recall has a greater impact on stock prices in the non-automobile industry than in the automobile industry, so it proposes Hypothesis 4.…”

Section: Partial Supportmentioning

confidence: 99%

An Analysis of the Impact of Product Recall on Stock Prices based on Google Trend Search Counts

Kim¹,

Lee²,

Shin³

2020

Glob Bus Financ Rev

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such as artificial intelligence and machine learning has highlighted many issues related to defects. These defects have a great ripple effect due to the nature of the product directly relating to mortality and safety, and the fact that many components and parts are shared to produce large quantities of products to achieve economies of scale. Therefore, automobile recalls have heightened consumer interest than any

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Product recalls, corporate social responsibility, and firm value: Evidence from the Chinese food industry

Cited by 56 publications

References 24 publications

Two-Stage Production System Pondering upon Corporate Social Responsibility in Food Supply Chain: A Case Study

Two-Stage Production System Pondering upon Corporate Social Responsibility in Food Supply Chain: A Case Study

Risk Attitude, Contract Arrangements and Enforcement in Food Safety Governance: A China’s Agri-Food Supply Chain Scenario

An Analysis of the Impact of Product Recall on Stock Prices based on Google Trend Search Counts

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