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The effects of the BSE outbreak on the security values of US agribusiness and food processing firms

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  • Hyun Joung Jin
  • Jang-Chul Kim

Abstract

A case of Bovine Spongiform Encephalopathy (BSE) was found on December, 2003 in the United States, which affected offshore and domestic demands for US beef. This study evaluates the effects of the BSE outbreak on the security values of the US agribusiness and food processing firms, using an event study. Empirical results indicate that the beef industry was significantly, negatively affected, but other meat industries benefited significantly. For the sectors not immediately involved with beef products, the effects were small or negligible.

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  • Hyun Joung Jin & Jang-Chul Kim, 2008. "The effects of the BSE outbreak on the security values of US agribusiness and food processing firms," Applied Economics, Taylor & Francis Journals, vol. 40(3), pages 357-372.
    • Handle: RePEc:taf:applec:v:40:y:2008:i:3:p:357-372
    DOI: 10.1080/00036840500461824
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    2. Law, Cherry & Cornelsen, Laura & Adams, Jean & Penney, Tarra & Rutter, Harry & White, Martin & Smith, Richard, 2020. "An analysis of the stock market reaction to the announcements of the UK Soft Drinks Industry Levy," Economics & Human Biology, Elsevier, vol. 38(C).
    3. Xiong, Tao & Zhang, Wendong & Chen, Chen-Ti, 2021. "A Fortune from misfortune: Evidence from hog firms’ stock price responses to China’s African Swine Fever outbreaks," Food Policy, Elsevier, vol. 105(C).
    4. Kong, Dongmin, 2012. "Does corporate social responsibility matter in the food industry? Evidence from a nature experiment in China," Food Policy, Elsevier, vol. 37(3), pages 323-334.
    5. M. P. McCullough & T. L. Marsh & R. Huffaker, 2013. "Reconstructing market reactions to consumption harms," Applied Economics Letters, Taylor & Francis Journals, vol. 20(2), pages 173-179, February.

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