This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

Market Incentives for Safe Foods: An Examination of Shareholder Losses from Meat and Poultry Recalls

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
 Thomsen, Michael R
McKenzie, Andrew M
Abstract

Meat and poultry recalls, while voluntary, are carried out under governmental oversight. If firms have financial incentives to avoid being implicated in a recall situation, governmental involvement in recalls may cause firms to internalize social costs when making investment decisions concerning food safety controls. To examine these incentives, we analyze federally supervised meat and poultry recalls from 1982 to 1998 within an event study. Results show significant shareholder losses when publicly traded food companies are implicated in a recall involving serious food safety hazards. We find no evidence that the stock market reacts negatively when recalls involve less severe hazards. Copyright 2001 by American Agricultural Economics Association

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.blackwell-synergy.com/servlet/useragent?func=synergy&synergyAction=showTOC&journalCode=ajae&volume=83&issue=3&year=2001&part=null
File Format: text/html
File Function: link to full text
Download Restriction: Access to full text is restricted to subscribers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Publisher Info
Article provided by American Agricultural Economics Association in its journal American Journal of Agricultural Economics.

Volume (Year): 83 (2001)
Issue (Month): 3 (August)
Pages: 526-38
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:bla:ajagec:v:83:y:2001:i:3:p:526-38

Contact details of provider:
Web page: http://www.blackwellpublishing.com/journal.asp?ref=0002-9092

Order Information:
Web: http://www.blackwellpublishing.com/subs.asp?ref=0002-9092

For technical questions regarding this item, or to correct its listing, contact: (Christopher F. Baum).

Related research
Keywords:

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Eng Cheah & Wen Chan & Corinne Chieng, 2007. "The Corporate Social Responsibility of Pharmaceutical Product Recalls: An Empirical Examination of U.S. and U.K. Markets," Journal of Business Ethics, Springer, vol. 76(4), pages 427-449, December. [Downloadable!] (restricted)
  2. Shiptsova, Rimma & Thomsen, Michael R. & Goodwin, H.L., 2002. "Producer Welfare Changes From Meat And Poultry Recalls," Journal of Food Distribution Research, Food Distribution Research Society, vol. 33(02), July. [Downloadable!]
  3. Thomsen, Michael R. & Ollinger, Michael & Crandall, Philip G. & O'Bryan, Corliss, 2008. "Mandatory Food Recalls," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6083, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  4. Eric Giraud-Héraud & Hakim Hammoudi & Louis-Georges Soler, 2006. "Food Safety, Liability and Collective Norms," Working Papers hal-00243034_v1, HAL. [Downloadable!]
  5. Henson, Spencer & Hooker, Neal H., 2001. "Private Sector Management Of Food Safety: Public Regulation And The Role Of Private Controls," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IAMA), vol. 4(01). [Downloadable!]
  6. Nilsson, Tomas & Foster, Ken, 2005. "Certification of Pork Products," 2005 Annual meeting, July 24-27, Providence, RI 19350, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  7. Zhen, Chen & Wohlgenant, Michael K., 2006. "Food Safety and Habits in U.S. Meat Demand under Rational Expectations," 2006 Annual meeting, July 23-26, Long Beach, CA 21287, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  8. Resende-Filho, Moises & Buhr, Brian, 2007. "Economics of traceability for mitigation of food recall costs," MPRA Paper 3650, University Library of Munich, Germany. [Downloadable!]
  9. Zhen, Chen & Wohlgenant, Michael K., 2005. "Meat Demand under Rational Habit Persistence," 2005 Annual meeting, July 24-27, Providence, RI 19145, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  10. Mojduszka, Eliza M., 2004. "Private And Public Food Safety Control Mechanisms: Interdependence And Effectiveness," 2004 Annual meeting, August 1-4, Denver, CO 19987, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
Statistics
Access and download statistics

Did you know? RePEc and its associated services are free for contributors and users, and do not accept any advertising.

This page was last updated on 2009-11-27.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.