Consumer Confidence in the Food System, Media Coverage and Stock Prices for the Food Industry

Pablo Garcia-Fuentes, Gustavo Ferreira, R Wes Harrison (), Jean D. Kinsey and Dennis Degeneffe

Journal of Food Distribution Research, 2014, vol. 45, issue 2, 20

Abstract: Ongoing food safety incidents have generated a national interest in the significant costs that food recalls impose on stakeholders. This paper examines the impact of media coverage of food safety events on consumer confidence in food safety, and measures the response of stock prices of food companies to changes in consumer confidence. Results show that increases in media coverage have a negative impact on consumer confidence, and that decreases in the levels of consumer confidence regarding food safety have a negative impact on a stock price index for a basket of food companies. These findings suggest that financial performance of food companies is generally and negatively affected by food safety events, even though the event may be company and/or category-specific in nature.

Keywords: Food Consumption/Nutrition/Food Safety; Food Security and Poverty; Productivity Analysis (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/186923/files/JFDR%2045_2__2GarciaFuentes.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:jlofdr:186923

DOI: 10.22004/ag.econ.186923

Access Statistics for this article

More articles in Journal of Food Distribution Research from Food Distribution Research Society Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().