The Experts below are selected from a list of 10887 Experts worldwide ranked by ideXlab platform
Barbara B. Flynn - One of the best experts on this subject based on the ideXlab platform.
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the effect of a toy industry Product Recall announcement on shareholder wealth
International Journal of Production Research, 2016Co-Authors: Barbara B. Flynn, Robert F JacobsAbstract:The widely publicised Product Recalls of lead-paint tainted toys in 2007 caused serious concerns among consumers, investors and the government. The widespread practice of global outsourcing in toy industry further intensifies consumers and investors’ uncertainties about toy safety. This paper assesses the stock market reaction to recent toy Recall announcements. Based upon the theoretical underpinnings from agency theory, signalling theory and prospect theory, it also develops an understanding of factors that influence the direction and magnitude of the stock market reaction. One hundred and forty-five toy Recall announcements in 2000–2014 were analysed using event study and linear regression. The results show that the announcement of a toy Recall was associated with a negative stock market reaction. The stock market reaction was more negative for toy Product Recall announcements by retailers or distributors, smaller source firms, toys with more severe hazards and source firms with higher growth potential...
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Impact of Product Recall announcements on retailers׳ financial value
International Journal of Production Economics, 2014Co-Authors: Barbara B. Flynn, F. Robert JacobsAbstract:Abstract 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 been investigated for retailers. Because retailers are the interface between consumers and the upstream supply chain, they play an important role as the first link in the reverse supply chain. Building upon attribution theory, signaling theory and prospect theory, we develop hypotheses about the way that investors view various attributes of a retailer׳s Recall announcement and test them using event study methodology and hierarchical regression analysis of objective, archival data. The results support the hypotheses that a Product Recall announcement has a financial impact on retailers that is more negative for a private label Product, a refund remediation strategy and for causes that are potentially more hazardous.
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The financial impact of Product Recall announcements in China
International Journal of Production Economics, 2013Co-Authors: Xiande Zhao, Barbara B. FlynnAbstract:Abstract 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 in the Western context, little is known about the financial impact of a Product Recall announcement in China. To advance the knowledge about the financial impact of a Product Recall announcement, we explore this issue using event study methodology. In general, our findings are congruent with previous research that Product Recalls result in negative abnormal returns. Interestingly, however, we found that Chinese companies suffered from greater financial losses than their Western counterparts did. This study also provides evidence that the Chinese food industry experiences a more severe stock market reaction than the automobile industry and that a passive Recall strategy was associated with a more negative stock market reaction than a proactive Recall strategy. We conclude with several future research avenues for global research on Product Recalls.
Paul Zipkin - One of the best experts on this subject based on the ideXlab platform.
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Design of traceability systems for Product Recall
International Journal of Production Research, 2014Co-Authors: Hongyan Dai, Mitchell M. Tseng, Paul ZipkinAbstract:A Product Recall is very expensive and a poorly executed Recall can be devastating to a company’s reputation. It is, therefore, important to improve the traceability for supply chains to address potential Recalls. This paper studies the Recall dynamics in a two-stage supply chain with a manufacturer and two suppliers. It is shown that the suppliers would opt-out in improving traceability due to misalignment of incentives, leading to diminishing traceability of the whole supply chain and high Product Recall liabilities for the manufacturer. To address this problem, this research designs an interest-sharing mechanism by which the Recall liability reduction of the manufacturer due to improved traceability can be shared with the suppliers to induce traceability improvement effort. Results show that the interest-sharing mechanism improves not only the economic benefit, but also the traceability for each party. We also provide a systematic framework to choose the design parameters, including the degree of accur...
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Design of Traceability Systems for Product Recall
SSRN Electronic Journal, 2011Co-Authors: Hongyan Dai, Mitchell M. Tseng, Paul ZipkinAbstract:A Product Recall is very expensive and a poorly executed Recall can be devastating to a company’s reputation. It is therefore important to improve the traceability for supply chains to address potential Recalls. This paper studies the Recall dynamics in a two-stage supply chain with a manufacturer and two suppliers. It is shown that the suppliers would opt-out in improving traceability due to misalignment of incentives, leading to diminishing traceability of the whole supply chain and high Product Recall liabilities for the manufacturer. To address this problem, this research designs an interest-sharing mechanism by which the Recall liability reduction of the manufacturer due to improved traceability can be shared with the suppliers to induce traceability improvement effort. Results show that the interest-sharing mechanism improves not only the economic benefit, but also the traceability for each party. We also provide a systematic framework to choose the design parameters, including the degree of accuracy and level of coding, for the supply chain to realize such benefits.
Xiande Zhao - One of the best experts on this subject based on the ideXlab platform.
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Developing Product Recall capability through supply chain quality management
International Journal of Production Economics, 2020Co-Authors: Min Zhang, Xiande ZhaoAbstract:Abstract Supply chain quality management (SCQM) has been viewed as a critical method for a manufacturer's management of Product Recalls. This study aims to empirically investigate the impact of SCQM practices on Product Recall capability using a sensemaking perspective. We adopt a multi-method approach by combining case study and quantitative survey methods. This study selects three manufacturers from the food, automobile and pharmaceutical industries to conduct an explorative case study. The findings reveal that Product Recall capability includes tracking and traceability and formal process, and the manufacturers use quality management teamwork, supplier qualification and supplier involvement as the key SCQM practices. A conceptual framework of the relationships between SCQM practices and Product Recall capability is developed based on the findings of the case study. The hypotheses are empirically tested using structural equation modelling, bootstrapping method and data collected from 400 manufacturers in China. We find that quality management teamwork and supplier qualification are positively associated with Product Recall capability. Quality management teamwork is positively associated with supplier qualification and involvement. In addition, supplier qualification partially mediates the effect of quality management teamwork and fully mediates the effect of supplier involvement on Product Recall capability.
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The financial impact of Product Recall announcements in China
International Journal of Production Economics, 2013Co-Authors: Xiande Zhao, Barbara B. FlynnAbstract:Abstract 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 in the Western context, little is known about the financial impact of a Product Recall announcement in China. To advance the knowledge about the financial impact of a Product Recall announcement, we explore this issue using event study methodology. In general, our findings are congruent with previous research that Product Recalls result in negative abnormal returns. Interestingly, however, we found that Chinese companies suffered from greater financial losses than their Western counterparts did. This study also provides evidence that the Chinese food industry experiences a more severe stock market reaction than the automobile industry and that a passive Recall strategy was associated with a more negative stock market reaction than a proactive Recall strategy. We conclude with several future research avenues for global research on Product Recalls.
Hongyan Dai - One of the best experts on this subject based on the ideXlab platform.
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Design of traceability systems for Product Recall
International Journal of Production Research, 2014Co-Authors: Hongyan Dai, Mitchell M. Tseng, Paul ZipkinAbstract:A Product Recall is very expensive and a poorly executed Recall can be devastating to a company’s reputation. It is, therefore, important to improve the traceability for supply chains to address potential Recalls. This paper studies the Recall dynamics in a two-stage supply chain with a manufacturer and two suppliers. It is shown that the suppliers would opt-out in improving traceability due to misalignment of incentives, leading to diminishing traceability of the whole supply chain and high Product Recall liabilities for the manufacturer. To address this problem, this research designs an interest-sharing mechanism by which the Recall liability reduction of the manufacturer due to improved traceability can be shared with the suppliers to induce traceability improvement effort. Results show that the interest-sharing mechanism improves not only the economic benefit, but also the traceability for each party. We also provide a systematic framework to choose the design parameters, including the degree of accur...
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Design of Traceability Systems for Product Recall
SSRN Electronic Journal, 2011Co-Authors: Hongyan Dai, Mitchell M. Tseng, Paul ZipkinAbstract:A Product Recall is very expensive and a poorly executed Recall can be devastating to a company’s reputation. It is therefore important to improve the traceability for supply chains to address potential Recalls. This paper studies the Recall dynamics in a two-stage supply chain with a manufacturer and two suppliers. It is shown that the suppliers would opt-out in improving traceability due to misalignment of incentives, leading to diminishing traceability of the whole supply chain and high Product Recall liabilities for the manufacturer. To address this problem, this research designs an interest-sharing mechanism by which the Recall liability reduction of the manufacturer due to improved traceability can be shared with the suppliers to induce traceability improvement effort. Results show that the interest-sharing mechanism improves not only the economic benefit, but also the traceability for each party. We also provide a systematic framework to choose the design parameters, including the degree of accuracy and level of coding, for the supply chain to realize such benefits.
Minhao Zhang - One of the best experts on this subject based on the ideXlab platform.
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an investigation of social media data during a Product Recall scandal
Enterprise Information Systems, 2018Co-Authors: Ying Kei Tse, Han Lin Loh, Juling Ding, Minhao ZhangAbstract:As social media has become an important part of modern daily life, users often share Product opinions online and these tend to spike when large companies undergo crises. This paper investigates cus...
