Stock Market Reaction to Food Recalls

Salin, Victoria; Hooker, Neal H.

doi:10.1111/1058-7195.00044

Cited by 98 publications

(79 citation statements)

References 12 publications

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“…For large firms, while the financial penalties in terms of fines associated with non-compliance may be trivial, the costs of bad publicity and/or product recalls can act as powerful market incentives for compliance. These can take the form of both the immediate costs of product withdrawal and disposal and, more significantly, the longerterm loss of market share (Salin and Hooker, 2001;Wang et al, 2002). For smaller firms, the financial penalties associated with regulatory action alone can impose significant economic costs and provide sufficient deterrence to non-compliance.…”

Section: Enforcementmentioning

confidence: 99%

Co-regulation as a possible model for food safety governance: Opportunities for public–private partnerships

et al. 2007

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Public concern about food safety is placing increasing pressure on government agencies to be more prescriptive and proactive in their regulation of the food industry. However, given the scarcity of public sector resources, concerns about the impact of regulation on competitiveness and the scale of the task at hand, there is growing interest in co-regulation, with public and private sectors working hand-in-hand to deliver safer food at lower (regulatory) cost. This paper explores the scope for the co-regulation of food safety in the UK and North America, where there are distinct differences in the established regulatory processes. The authors conclude that opportunities clearly exist, to varying degrees in the different countries analysed, but that considerable obstacles remain to the widespread adoption of co-regulatory practices in the area of food safety.

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Section: Enforcementmentioning

confidence: 99%

Co-regulation as a possible model for food safety governance: Opportunities for public–private partnerships

et al. 2007

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“…Detailed empirical research has found that product recalls can have a significant negative impact on firms across a range of performance measures, including operational performance (Hendricks & Singhal, 2005), share price Salin & Hooker, 2001;Wang et al, 2002), customer sales (Thomsen et al, 2006), consumer demand (Marsh et al, 2004), market movements (Palma et al, 2010), food prices (Li et al, 2010;, and prices on the futures market (Lusk & Schroeder, 2002). For example, Thomsen et al (2006) found that sales of recalled brands declined, on average, by 22% to 27% during the four to eight week time period after a recall announcement of Listeria.…”

Section: Introductionmentioning

confidence: 99%

Trends in product recalls within the agri-food industry: Empirical evidence from the USA, UK and the Republic of Ireland

Potter

Murray

Lawson

et al. 2012

Trends in Food Science & Technology

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Please cite this article as: Potter, A., Murray, J., Lawson, B., Graham, S., Trends in product recalls within the agri-food industry: Empirical evidence from the USA, UK and the Republic of Ireland, Trends in Food Science & Technology (2012), doi: 10.1016/j.tifs.2012 This is a PDF file of an unedited manuscript that has been accepted for publication. As a service to our customers we are providing this early version of the manuscript. The manuscript will undergo copyediting, typesetting, and review of the resulting proof before it is published in its final form. Please note that during the production process errors may be discovered which could affect the content, and all legal disclaimers that apply to the journal pertain. M A N U S C R I P T A C C E P T E D ACCEPTED MANUSCRIPT Trends in Product Recalls within the Agri-Food Industry: Empirical Evidence from the USA, UK and the Republic of Ireland AbstractThe increasing frequency of product recalls within the agri-food industry has led many to question food safety. Research studies also often focus on biological hazards without considering how past, present and emerging risks change over time. We undertake a systematic review of the different biological, operational and chemical hazards within the agri-food industry using a dataset of 2,070 registered food recalls in the USA, UK and Republic of Ireland between 2004-2010. We show product recalls have become more frequent over time and operational hazards, rather than biological and chemical hazards, are the most frequent recall type within the agrifood industry.

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“…The concept of our analysis is essentially the same as an event study that measures the impact of a specific event on the value of a firm by comparing the "normal" and "abnormal" returns using financial market data (Knapp 1990;MacKinlay 1997;Salin and Hooker 2001).…”

Section: Methodsmentioning

confidence: 99%

Economic impact of the 2005 red tide event on commercial shellfish fisheries in New England

Jin

Thunberg

Hoagland

2008

Ocean & Coastal Management

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Stock Market Reaction to Food Recalls

Cited by 98 publications

References 12 publications

Co-regulation as a possible model for food safety governance: Opportunities for public–private partnerships

Co-regulation as a possible model for food safety governance: Opportunities for public–private partnerships

Trends in product recalls within the agri-food industry: Empirical evidence from the USA, UK and the Republic of Ireland

Economic impact of the 2005 red tide event on commercial shellfish fisheries in New England

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