The effects of the news media on a firm's voluntary product recalls
研究美国22家汽车制造商2009至2020年数据，发现新闻媒体报道量增加会促使经理人自愿召回产品，负面报道强化此效应，而媒体评级则起缓冲作用。
Does the news media's reporting of the safety (or the lack thereof) of a firm's products impact managers’ voluntary recalls of the products? The current article empirically answers this question in the context of safety defects in vehicles of 22 manufacturers from June 2009 to December 2020 in the United States. Results show that the volume of news reports about safety in a manufacturer's products increases voluntary recalls by managers. Further, the negativity in these news reports strengthens the main effect of news volume, whereas news positivity does not moderate the main effect. Last, The media's rating of the manufacturer's products weakens the news volume effect, thus acting as a buffer. The supplementary analysis demonstrates that none of the main or moderation effects exists for involuntary recalls, confirming the theory that news affects managers’ voluntary behavior. Finally, the effects exist for high (and not low) severity voluntary recalls only. The findings unearth the news media's role in enhancing public safety by affecting managerial decisions about recalls.