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The Effects Of Product Recalls On Competitors’ Market Value And Recalling Firm’S Reputation, Dong Liu

USF Tampa Graduate Theses and Dissertations

Scholars have paid intensive attention to product recalls over the past two decades. Prior studies show that product recalls negatively affect the recalling firm’s sales, consumer-based brand equity, and firm value. However, less attention has been paid to the spillover effect of product recalls on the market value of the recalling firm’s competitors in the same industry, and the long-term effect of product recalls on firm reputation. The objective of this dissertation is to fill up these research gaps through two essays.

In Essay 1, I investigate factors affecting the spillover effect of a product recall on the firm value …