Study On The Influence Of Product Recall On Enterprise Market Value In Automobile Industry

Product recall will lead to direct costs of recall actions and indirect costs such as reputation loss,which will have a huge impact on enterprises.Automobile recall is a hot spot in academic research.Most of the previous studies show that automobile recall will have an impact on the market value of enterprises.In the process of recall,automobile enterprises can choose the recall time freely,and also choose whether to undertake corporate social responsibility or respond,which may affect the results of recall.However,current studies have not unified the definition of recall time,and there is little discussion on the impact of response before recall.Therefore,thesis matches the recall announcement with news information to study the influence of the time between the exposure of defects and the release of the recall announcement and the response before the recall on the process.In addition,thesis also attempts to explore the moderating effect of corporate social responsibility in such recalls,so as to provide references for enterprises to better cope with recall events.In thesis,the event study method and regression analysis method were used to collect the recall announcements and negative defect event reports issued by 26 domestic listed vehicle enterprises from January 1,2011 to December 31,2021,which were matched according to the time,model and negative problems.A total of 50 samples with clear matching were used for research.The research conclusion shows that: for those automobile enterprises whose recall defects are exposed in advance,firstly,automobile recall will have a negative impact on enterprise market value,and rapid recall will weaken the negative impact of recall on enterprise market value.Second,companies that had responded to negative events in advance fared better in recalls.Finally,CSR will weaken the negative impact of recall on corporate market value.In addition,finds that higher corporate social responsibility will enhance the positive impact of rapid recall on enterprise market value.In thesis,negative quality event reports of automobiles are combined with automobile recall,and the relationship between recall time,enterprise response and recall is explored,which enricfies the research on automobile recall,provides relevant suggestions for enterprises and investors,and has certain theoretical value and practical significance.