A product recall can be viewed as a firm’s worst nightmare. Although the long-term damage to brand equity and company reputation may be difficult, if not impossible, to quantify, the short-term impact on shareholders’ wealth is readily estimable. While many studies have examined this issue...

The increase in the number of high-profile product recalls in recent years highlights the issue of ensuring product safety in global supply chains. Although the financial effect of a product recall announcement has been previously investigated from the perspective of manufacturers, it has not...