The Corporate Social Responsibility of Pharmaceutical Product Recalls: An Empirical Examination of U.S. and U.K. Markets

The pressure on companies to practice corporate social responsibility (CSR) has gained momentum in recent times as a means of sustaining competitive advantage in business. The pharmaceutical industry has been acutely affected by this trend. While pharmaceutical product recalls have become rampant and increased dramatically in recent years, no comprehensive study has been conducted to study the effects of announcements of recalls on the shareholder returns of pharmaceutical companies. As product recalls could significantly damage a company’s reputation, profitability and brand integrity, this paper investigates the effect on shareholder wealth and the extent to which the adoption of CSR practices by pharmaceutical companies in the United Kingdom (U.K.) and the United States (U.S.), the two largest markets for pharmaceutical products in the world, affected market reactions surrounding product recall announcements. The analysis of product recall announcements from 1998 to 2004 compiled from The Pharmaceutical Journal and U.S. Food and Drug Administration enforcement reports revealed marked differences in the way market participants in the two countries responded to news of product recalls. U.S. investors penalised firms according to the severity of product defects while U.K. investors were indifferent. While U.K. investors rewarded product recalls by firms which were not usually CSR-active, U.S. investors punished non-CSR active firms that performed recalls. These observations could pose strategic challenges to pharmaceutical firms operating in both countries. Jeremy Cheah is an Assistant Professor of Finance at Nottingham University Business School, Malaysia Campus. His research interests lie in the area of applied corporate finance and investment management. Wen Li Chan was an Advocate and Solicitor in Kuala Lumpur, Malaysia before assuming the post of University Teacher in Information Systems and Strategy at Nottingham University Business School, Malaysia Campus. She is currently investigating the roles and implications of information on firm valuation, particularly in the area of corporate cyber-litigation and corporate social responsibility. Corinne Chieng is a Corporate Executive at Star Publications (M) Berhad, Malaysia. She has previously worked as a tax consultant at Arthur Andersen Malaysia. Her research interests include the financial implications of corporate social responsibility on the valuation of firms.     

Are you ready for your next product recall crisis? Lessons from operations and supply chain management

Most manufacturing companies face the possibility of a product recall crisis, if not within their own firms, then certainly somewhere within their supply chains. Recall crisis management typically finds a home within literature on crisis management, public relations, communications, marketing and brand management, and related fields. However, this research seldom addresses the operations support that must be mustered behind the scenes. The tumultuous material flows that can occur during a product recall imply a supply chain disruption. An effective response during the heat of a crisis therefore requires the foundation of a well-oiled supply chain. In this article I draw on learnings from the operations and supply chain management (OSCM) literature, integrate them with important precepts from the general crisis management and product recall literature, and identify managerial best practices that will help managers better prepare for product recall crises.     

互联网是否促进了制造业产品升级——基于技术复杂度的分析

近年来,互联网跨界经营和应用受到实务界和学术界的广泛热议,但鲜有文献从更为微观的产品视角深入探讨企业使用互联网对制造业产品升级的影响。本文通过匹配中国工业企业数据库和中国海关数据库,采用OLS、Probit以及Heckman选择模型,研究了互联网对企业产品横向升级的影响及内在机制。研究发现:(1)企业使用互联网能显著促进出口概率的增加以及技术复杂度的提升;(2)互联网对技术密集型企业和内资企业的技术复杂度提升效果更明显;(3)技术创新是打开互联网促进制造业产品升级这一“黑箱”的重要机制,而波特强调的成本领先优势在互联网环境下只是企业实现产品升级和获取竞争优势的必要条件。因此,加快推进互联网在高技术企业和内资企业的应用,加大对企业研发创新投入的支持力度,是实现中国制造业产品升级目标的关键。     

中国农产品流通体系的现状及优化建议

农产品流通体系运作效率与运作质量的高低,不仅关系到农产品生产者的切身利益,也牵涉到农产品消费者的利益。优化农产品流通渠道体系,应完善农产品流通渠道各个环节的服务,建设农产品物流一体化的渠道运作模式。优化流通载体,应继续完善大型批发市场的功能与体制,实现批发市场同现代物流的对接;发展新流通载体模式。加强农产品流通体系的信息化建设,加大对农产品流通税收、信贷政策的支持,加快农产品流通立法。     

Leapfrogging in a Vertical Product Differentiation Model

The model considers a two-period duopoly game where in the first period the leader produces a good with a given quality and the other firm can only imitate it. It is the Stackelberg case where, in addition, the leader has the choice of the quality of the good and the imitation is costly, but not prohibitively so. Under this assumption quantities and profits in terms of the quality are derived as subgame perfect equilibrium. In the second period there exists the possibility for the leader and/or the follower to make an investment. The outcome of this is uncertain: it could either be the case that a good of better quality can be introduced, or that a cost-reduction in producing the existing good is attained. The former case is a product innovation, whereas the latter case is a process innovation. By solving the game backwards as a function of the quality of the first period, there exists the possibility of an equilibrium where the follower chooses to invest and the leader does not invest .     

Should governments mandate more female board representation? Possible intended and unintended consequences

Using data on more than 4,000 product recalls, we recently found that firms whose boards of directors include more women are significantly faster to recall dangerously defective medical products. More specifically, adding just one female director to a board with no women did not speed recalls, but increasing from one female director to two, from two to three, and so on led to increasingly faster recalls. This provides initial evidence that consumer safety can be improved through including more women on companies’ boards. Assuming data from other settings support our findings, it is tempting to conclude that governments should mandate a certain level of female board representation, especially for firms in consumer product sectors such as medical devices, food, toys, and automobiles. We suggest, however, that policy makers need to carefully think through the possible intended and unintended consequences of dictating board composition in terms of gender. Meanwhile, wise companies will recognize the benefits of greater female board representation and will pursue it without government intervention.     

浅谈植入式广告在广播中的运用

植入式广告在影视和网络游戏中渐入佳境,而在广播中尚待开发,有关广播的植入式广告的理论探讨还是空白。本文针对植入式广告在广播中的运用进行了探讨,并提出实务过程中需要注意和解决的问题。     

产品空间结构与农产品比较优势动态——基于高维面板数据的分析与预测

本文从产品空间理论出发,以2000-2010年52国的65种细分农产品数据为样本,探讨了农产品空间的分布形式,建立高维面板数据模型检验了产品空间结构与比较优势变动的关系,并对中国农产品比较优势培育目标的选择进行了探讨。研究发现:农产品空间分布是不均匀的,不同品种间的距离有差异;产品密度高对农产品比较优势的变动具有正面影响。本文认为,对农产品比较优势变动进行干预和引导,必须遵循此规律,依据比较劣势产品密度的大小来依次选择合适目标,才能有效的在更多农产品上实现比较优势。     

Consumer Product Redistribution

Abstract

Formats for product redistribution are emerging and evolving, creating alternative channel options for consumers' disposition of unwanted possessions. These retail formats operate in both informal (e.g., garage sales) and formal (online auctions) economies. As consumers participate in redistribution channels, some retailers are confronted with new competition and the potential for declining sales. This article expands on both recycling and disposition literature by examining consumer disposition behavior and the flow of used products through various redistribution channels. Strategies are offered to address consumer disposition behaviors as well as to assist retailers in combating traditional and non-traditional competition.     

现代国际领域产品生命周期研究——对弗农(Vernon)学说的一种拓展

着眼于时间维度,通过对产品概念的三层内涵和对应的三类国际贸易投资中产品生命周期的初步研究,将弗农学说进一步动态化和系统化。在此基础上讨论了国际贸易与投资发生的时间和从长期来看的发展趋势,提出了描述产品研发、生产、销售通过国际贸易和国际投资在各国间转移的“波浪模型”。使国际领域产品生命周期理论能更好地解释现代国际贸易投资的新现象,也有助于从时间角度在整体上理解和把握国际贸易与投资的大趋势。     

An Update on EU Financial Reforms

In the context of a transatlantic comparison,the first thing to be mentioned is the difference between the time sequence of financial reforms in the European Union and its equivalent in the United States.The financial crisis started simultaneously on both sides of the Atlantic, with the initial disruption of some financial market segments in August 2007 and the major panic episode of September through October 2008.But they are not at the same stage of policy reaction and especially regulatory reform now....     

基于生命周期理论的我国技术标准战略研究

技术标准已经成为国际经济竞争的最主要形式之一。本文根据产品生命周期理论,研究了技术标准演进的规律,分析了技术标准对市场的强化作用和保护作用,指出了竞争者在技术标准运行的不同阶段所应采取的标准战略,最后提出了我国实施技术标准战略应采取的对策。     

Product differentiation and duration of US import trade

We examine the extent to which product differentiation affects duration of US import trade relationships. The results are consistent with a matching model of trade formation. Using highly disaggregated product level data we estimate the hazard rate is at least 23% higher for homogeneous goods than for differentiated products. The results are not only highly robust but are often strengthened under alternative specifications. As the smallest relationships are dropped, differences across product types increase. Controlling for potential measurement errors also results in larger differences across product types.     

2009年加拿大食品检验局通报各国水产品安全问题分析

根据加拿大食品检验署官方网站向公众通报进口自各国水产品出现问题的情况,总结各国被通报问题涉及的安全项目,分析问题产生的原因,以期减少或避免类似情况的发生,希望对我国食品安全管理起到一定的借鉴作用,确保对加拿大水产贸易的顺利进行。     

Product differentiation and consumption efficiency in mortgage markets

This study evaluates the outcome of non-price competition in the UK mortgage market. Developing a novel application of data envelopment analysis, DEA, within the banking literature, this study finds evidence of high consumption efficiency. Employing cluster analysis, the study provides additional evidence that efficient mortgages are available for borrowers across a broad range of market segments. The study also shows that these beneficial aspects of non-price competition are only available to borrowers who select mortgages based on rational measures of price. The discussion closes with guidance for policymakers.     

中外强制性产品认证制度对比及建议

对涉及安全、健康、环保的产品实施强制性产品认证是各国政府规范市场、促进国际贸易、保护群众切身利益的重要手段。本文通过介绍国内外强制性产品认证制度,对我国强制性产品认证面临的问题进行分析,并对完善其制度提出对策建议。     

Store Brand Quality and Retailer’s Product Line Design

This study analyzes a retailer’s store brand quality decision in vertically differentiated product categories. We analyze a game theoretic model composed of one or two national brand manufacturers and a retailer, who strategically chooses the quality level(s) of its store brand(s) relative to the well-established national brand position(s) to maximize its category profit. Our analysis reveals that the nature of a retailer’s store brand quality positioning is quite different from the manufacturer’s national brand positioning decision, and that the best position for a store brand is not “as close to a national brand as possible” as previous studies suggest. Instead, the optimal quality position of each store brand is remarkably sensitive to the distribution of consumers’ willingness-to-pay. In particular, the relative proportions of quality sensitive consumers and price sensitive consumers determine the balance of three key strategic forces — the market expansion force, the retail margin force, and the consumer profitability force, leading to different optimal product line designs for store brands across different category environments. Interestingly, against multiple incumbent national brands, the retailer’s optimal product line design includes a store brand positioned at the highest quality level in the category only if most consumers are moderately quality conscious. We also analyze the implications of national brands’ brand equity for retailers’ store brand strategy.     

南北贸易中产品种数变化与国际贸易摩擦

本文扩展了保罗·萨缪尔逊提出的国际贸易摩擦的静态理论模型,运用赫尔普曼(1993)和Fujiwarw(2004)分析南北贸易的理论与方法,提出了解释南北国际贸易摩擦的动态模型,并运用相关统计资料,对动态模型的基本结论进行了实证分析。     

全球化条件下的中欧贸易产品结构与贸易不平衡分析

中欧之间的贸易额将在世界经济复苏、全球化深入发展、欧盟继续扩张的背景下大幅上涨。对中欧贸易产品结构和贸易顺差的分析发现:中欧之间产业内贸易已占据主导地位;我国主要利用全球化条件下国际动态比较优势的转移向欧盟大量出口劳动密集型的制成品,并因此获得对欧顺差;欧盟在技术、高科技产品、服务贸易领域具有很强的对华出口优势,但同时要为适应新的国际分工格局而必须进行产业结构调整。减少中欧贸易之间不断扩大的贸易顺差需要中、美、欧从全球市场角度共同采取行动:各经济体要从内部寻找贸易不平衡的原因并加以改善;我国以开放服务市场换得欧盟放宽对华技术出口并使得出口比较优势得以持续升级;扩大双方投资额以寻求更深入的经济融合。