Measuring the impact of food safety recalls on firms: An event study of the 2008 Listeria monocytogenes recall in Canada.

摘要

This thesis investigates the economic impact of food safety recalls on the capital share returns of publicly traded meat processing firms using the 2008 Listeria monocytogenes recall in Canada as a case study. The event study method was applied to this study to identify the size, direction and duration of abnormal returns to Maple Leaf Foods Inc. and Premium Brands Holdings which may have resulted from the Listeria recall. Results show that capital share returns to Maple Leaf Foods Inc. and Premium Brands Holdings were negatively impacted by the recall during the event window. Abnormal returns calculated during the post-event window provided evidence that Maple Leaf's reaction to the announcement may have restored investor confidence in Maple Leaf shares to some degree and that Premium Brands Holdings lack of communication about their meat processing safety protocols may have negatively impacted Premium Brands share returns.