Working Papers

Should Ad Spending Increase or Decrease Prior to a Product Recall Announcement?

Haibing Gao, Jinhong Xie, Qi Wang, and Kenneth C. Wilbur

Oct 8, 2014

Investigates how advertising before a product harm crisis announcement affects post-recall stock prices; based on 110 automakers’ product recall announcements and stock prices between 2005 and 2012.

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