Graduation Year


Document Type




Degree Name

Doctor of Philosophy (Ph.D.)

Degree Granting Department


Major Professor

Sajeev Varki, Ph.D.

Committee Member

Donna Davis, Ph.D.

Committee Member

Anand Kumar, Ph.D.

Committee Member

Ninon Sutton, Ph.D.

Committee Member

Mingyang Li, Ph.D.


product recall, spillover effect, market value, firm reputation


Scholars have paid intensive attention to product recalls over the past two decades. Prior studies show that product recalls negatively affect the recalling firm’s sales, consumer-based brand equity, and firm value. However, less attention has been paid to the spillover effect of product recalls on the market value of the recalling firm’s competitors in the same industry, and the long-term effect of product recalls on firm reputation. The objective of this dissertation is to fill up these research gaps through two essays.

In Essay 1, I investigate factors affecting the spillover effect of a product recall on the firm value of competitors. Findings show that a product recall by a firm with higher corporate product reliability more hurts the market value of its competitor (negative spillover). The negative spillover effect is weaker for competitors with higher corporate product reliability. Further, product recalls made by firms with higher corporate product reliability exert a negative spillover on the competitor’s market value in the event of the competitor’s new product pre-announcement after the recall. This effect is attenuated by the strength of the competitor’s corporate product reliability.

In Essay 2, I examine the pattern of frequent product recalls on firm reputation. I identify five characteristics of product recall pattern: recall frequency (number of product recalls), recall volume (number of recalled items), recall recency (timing of the latest product recall), recall pace (speed of product recall timing), and recall clumpiness (lack of consistency of product recall timing). Results reveal that recalling firm’s reputation is hurt by recall frequency and recall volume. In addition, the results show that recalling firms need to announce their product recalls closely but avoid announcing clustered product recalls during a calendar year. The findings from both essays deepen our understanding of product recalls and help practitioners manage product recalls.

Included in

Marketing Commons