Impact of product recalls on future product reliability and future accidents

KALAIGNANAM, KARTIK

Impact of product recalls on future product reliability and future accidents Evidence from the automobile industry - 2013 - 41-57

Although the goal of a product recall program is to enhance safety, little is known about whether firms learn from product recalls. This study tests the direct effect of product recalls on future accidents anf future recall frequency and their indirect effect through future products reliability in the automobile industry. The author test the hypotheses on 459 make/year observations involving 27 automobile makers between 1995 2011.

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