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Two Essays On Limiting The Negative Impact Of Product Recalls, Seyyed Amirali Javadinia

Theses and Dissertations

The dissertation is composed of two essays. In the first essay, authors conceptualize recall environment, test its effect on post-recall stock returns and identify the role of recall and product characteristics in moderating this relationship. The authors test their hypotheses on a sample of 90 recall announcements in the automobile industry from 2011 to 2016. The results show that on average, announcing a recall in an intense environment aggravates negative stock returns accruing from the recall. Further, while low reputation brands are mostly prone to this negative impact of recall environment, high reputation brands are less susceptible to this negative …