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The Effects Of Starlink Corn Food Safety Events On Returns And Risk Of Agribusiness Firms

Author

Listed:
  • Golub, Alla A.
  • Wilson, Christine A.
  • Featherstone, Allen M.

Abstract

Using event study methodology, we examine the effects of three Starlink corn food safety events on the risk and returns of directly involved agribusiness firms and the diffusion effects on other firms in the industry. We test the hypothesis that Starlink food safety events do not have an impact on the magnitude and volatility of the returns and the nondiversifiable risk of the firms. Based on the results of this study, we conclude that Wall Street is not sensitive to the Starlink corn food safety events.

Suggested Citation

  • Golub, Alla A. & Wilson, Christine A. & Featherstone, Allen M., 2005. "The Effects Of Starlink Corn Food Safety Events On Returns And Risk Of Agribusiness Firms," Staff Papers 28641, Purdue University, Department of Agricultural Economics.
    • Handle: RePEc:ags:puaesp:28641
    DOI: 10.22004/ag.econ.28641
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    References listed on IDEAS

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    1. Henneberry, Shida Rastegari & Piewthongngam, Kullapapruk & Qiang, Han, 1999. "Consumer Food Safety Concerns And Fresh Produce Consumption," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 24(1), pages 1-16, July.
    2. Misra, Sukant K. & Huang, Chung L. & Ott, Stephen L., 1991. "Consumer Willingness To Pay For Pesticide-Free Fresh Produce," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 16(2), pages 1-10, December.
    3. Victoria Salin & Neal H. Hooker, 2001. "Stock Market Reaction to Food Recalls," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 23(1), pages 33-46.
    4. Michael R. Thomsen & Andrew M. McKenzie, 2001. "Market Incentives for Safe Foods: An Examination of Shareholder Losses from Meat and Poultry Recalls," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(3), pages 526-538.
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