Do CEO Characteristics Matter in Product Recalls?

IF 1.9 Q3 BUSINESS

International Journal of the Economics of Business Pub Date : 2023-06-01 DOI:10.1080/13571516.2023.2213127

António Miguel Martins, C. Pires

引用次数: 1

Abstract

Abstract This study examines the effect of CEO characteristics such as gender, age, tenure, functional background, stock ownership, compensation scheme and dual role on the stock market returns of automobile companies, around the announcement of product recalls. Using an event study, for a sample of 2,576 product recalls in the US automobile industry, between January 2010 and June 2021, we observe that the stock market’s reaction to a product recall announcement is negative. However, the impacts on the cumulative abnormal returns around the announcement of product recalls of the company’s CEO being female, the CEO tenure, the CEO having an operations or marketing background, the ratio of CEO long-term compensation to total compensation and the CEO and Chairperson being the same person are all positive and statistically significant, showing that these CEO characteristics mitigate the negative effects on a company’s financial value caused by product recalls.

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CEO的特点对产品召回有影响吗?

摘要本研究考察了汽车公司CEO的性别、年龄、任期、职能背景、持股情况、薪酬方案和双重角色等特征对汽车公司产品召回公告前后股票市场收益的影响。通过对2010年1月至2021年6月期间美国汽车行业2576次产品召回的样本进行事件研究，我们观察到股市对产品召回公告的反应是负面的。而CEO为女性、CEO任期、CEO具有运营或营销背景、CEO长期薪酬占总薪酬的比例、CEO与董事长为同一人等因素对产品召回公告前后累积异常收益的影响均为正的且具有统计学意义，说明这些CEO特征缓解了产品召回对公司财务价值的负面影响。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

International Journal of the Economics of Business BUSINESS-

CiteScore

2.60

自引率

8.30%

发文量

期刊介绍： International Journal of the Economics of Business presents original, peer reviewed research in economics that is clearly applicable to business or related public policy problems or issues. The term "business" is used in its widest sense to encompass both public and private sector—governmental, private non-profit and cooperative organizations, as well as profit-seeking enterprises. International Journal of the Economics of Business carries papers relating to three main spheres: The organization—to analyse and aid decision making and the internal organization of the business; The industry—to analyse how businesses interact and evolve within and across industries.