01402nas a2200169   4500008004100000245012600041210006900167260000900236300001200245490000700257520075500264653001201019100002201031700002001053700002401073856013501097       2014                        eng d00aThe Effect on Stockholder Wealth of Product Recalls and Government Action:  The Case of Toyota's Accelerator Pedal Recall0 aEffect on Stockholder Wealth of Product Recalls and Government A  c2014  a521-5280 v543 aWe analyze the effect of Toyota’s faulty accelerator pedal on stockholder wealth. Using the event study methodology, we show that a major recall in January of 2010 caused the company’s cumulative abnormal returns to fall by 19 percent. Continued concerns that Toyota was unable to identify and adequately fix the problem induced the National Highway Traffic Safety Administration to conduct its own investigation in March, 2010. The results of this government investigation exonerated the company and caused Toyota’s cumulative abnormal returns to rise by almost 9 percent. The Toyota case provides an opportunity to study a product recall with both company error and a government action that addressed concerns about the safety of the product.10aFinance1 aGokhale, Jayendra1 aBrooks, Raymond1 aTremblay, Victor, J  u/biblio/effect-stockholder-wealth-product-recalls-and-government-action-case-toyotas-accelerator-0