The effect of product recall announcements on shareholder wealth
Article Abstract:
The reaction of the stock market to announcements of product recall and products taken off the market was examined. The study analyzed data from 133 nonautomobile or tire industry that have issued product recall announcements between 1968 and 1987 as recorded in the Wall Street Journal Index. Findings showed that the stock market responded negatively to product recall, and even more negatively to product replacement. These announcements were found to cause negative abnormal returns. If the product recall was due to corporate irresponsibility, the stock market's negative behavior may indicate a direct relationship between socially irresponsible corporate behavior and stockholder wealth. However, if the negative response was directed to the possibility of lesser product demand, then the link between stock prices and corporate social responsibility would only be indirect.
Publication Name: Strategic Management Journal
Subject: Business
ISSN: 0143-2095
Year: 1992
User Contributions:
Comment about this article or add new information about this topic:
The impact of marketing operations on bank performance: a structural investigation
Article Abstract:
The concept of bank marketing represents a philosophy of doing business according to three key factors: satisfaction of the consumer, orientation toward profit, and marketing function integration throughout the organization's operational areas. Each of these aspects of bank marketing is discussed in terms of economic benefit to the banking institution, and the relationship between the adoption and use of the marketing concept and different bank performance measures is analyzed. The empirical data indicate a strong connection between marketing and bank profitability.
Publication Name: Journal of Bank Research
Subject: Business
ISSN: 0021-9215
Year: 1986
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: The effect of voluntary sell-off announcements on shareholder wealth. The Effect of Voluntary Spin-Off Announcements on Shareholder Wealth
- Abstracts: The effect of barriers to entry on bank shareholder wealth: implications for interstate banking
- Abstracts: The effect of bond deratings on bank stock returns. Determinants of stock repurchases by bank holding companies
- Abstracts: The measurement of interest-rate risk by financial intermediaries. The Performance of First Pennsylvania Bank Prior to its Bail Out
- Abstracts: Volume, volatility, price, and profit when all traders are above average. Disclosure when the market is unsure of information endowment of managers