首席执行官背景如何影响产品召回公告前后的股市回报?来自美国汽车行业的证据

IF 4.1 3区 管理学 Q2 BUSINESS
António Miguel Martins, Cesaltina Pires
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引用次数: 0

摘要

本文旨在强调首席执行官的背景在股票市场对产品召回反应中所起的作用。基于高层理论和危机管理文献,我们认为首席执行官的背景会影响产品危害危机中的预期反应,以及产品召回公告发布后投资者预期的更新。我们检验了首席执行官的背景是否会影响围绕产品召回的股市异常回报,以及它如何影响投资者解释召回策略和严重程度的方式。研究结果我们观察到,如果公司的首席执行官具有核心专家背景,且公司由内部首席执行官领导,则股市的负面反应较小。这一结果与我们的论点相吻合,即在产品召回等需要运营知识和公司特定知识的危机中,如果首席执行官是内部招聘且是核心专家,则首席执行官背景的最佳匹配度就会出现。最后,我们还发现,首席执行官的背景对召回策略和严重程度对召回公告的股市反应的影响具有调节作用。特别是,当首席执行官是核心专家时,召回的严重程度越高,股票市场的反应就越消极,因为这样的事件是市场没有预料到的。鉴于汽车行业中企业开展这些业务的高频率和高成本,我们建议在任命首席执行官之前对其背景进行仔细分析,并制定周密计划,以预防产品质量问题并对其做出适当反应。虽然企业高管普遍倾向于削减可自由支配的开支,如产品安全方面的开支,但我们关于股票市场对产品召回公告反应的研究结果表明,投资者预期由内部人和核心专家担任首席执行官的企业更有可能确保产品质量和应对产品质量危机。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
How does CEO background affect stock market returns around product recall announcements? Evidence from the US automobile industry
PurposeThis paper aims to highlight the role of the CEO’s background in the stock market reaction to a product recall. Based on the upper echelons theory and the crisis management literature, we argue that the CEO’s background influences the expected response in a product harm crisis and the updating of investors’ expectations following a product recall announcement. We test if the CEO’s background influences the abnormal stock market returns around product recalls and how it affects the way investors interpret the recall strategy and severity.Design/methodology/approachWe use an event study, for a sample of 2,576 product recalls in the US automobile industry, between January 2010 and June 2021.FindingsWe observe that the stock market’s reaction is less negative if the firm’s CEO presents a core specialist background and for firms led by insider CEOs. This result is in line with our argument that in the presence of a crisis that requires operational and firm-specific knowledge, such as product recalls, the best alignment in terms of the CEO’s background occurs when the CEO was recruited inside and is a core specialist. Finally, we also find that the CEO’s background has a moderating effect on the impact of the recall strategy and severity on the stock market reaction to a recall announcement. In particular, a recall with high severity has a more negative stock market reaction when the CEO is a core specialist as such an event is not expected by the market.Practical implicationsThese results have important implications for practitioners and scholars working in the areas of product quality and corporate governance. Given the high frequency and high costs for firms to carry out these operations in the automobile industry, we recommend a careful analysis of the CEO’s background before their appointment as well as careful planning to prevent and to adequately react appropriately to product quality problems. While there is a common tendency among executives to cut discretionary expenditures such as spending on product safety, our results regarding the stock market reaction to product recall announcements suggest that investors expect firms led by insider and core specialist CEOs to be more likely to ensure product quality and to respond to product quality crisis.Originality/valueWe extend knowledge of product recalls by studying the role of the CEO’s background on the stock market reaction to product recall announcements.
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来源期刊
CiteScore
8.20
自引率
8.70%
发文量
126
期刊介绍: ■In-depth studies of major issues ■Operations management ■Financial management ■Motivation ■Entrepreneurship ■Problem solving and proactivity ■Serious management argument ■Strategy and policy issues ■Tactics for turning around company crises Management Decision, considered by many to be the best publication in its field, consistently offers thoughtful and provocative insights into current management practice. As such, its high calibre contributions from leading management philosophers and practitioners make it an invaluable resource in the aggressive and demanding trading climate of the Twenty-First Century.
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