Meat Science Commons^™

Stock Market Reactions To Unfavorable Product Information: A Case Study Of Comments On Beef Safety Made On An Oprah Winfrey Show, Elpida Ormanidou, Michael Thomsen

Discovery, The Student Journal of Dale Bumpers College of Agricultural, Food and Life Sciences

This study examines the impact of unfavorable media coverage on the stock market prices of major food companies, an issue of increasing importance to the food industry. The study focuses on the 16 April 1996 Oprah Winfrey Show, a popular television program that raised questions about the safety of the U.S. beef supply. The show resulted in considerable controversy, and some cattle feeders blamed the show for a drop in cattle prices. The focus of this study is on the impact of the program at other stages of the food system. We examined the stock returns of two major beef …