Percorrer por autor "Yu-Yen, Shih"
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- How did the explosion of Galaxy Note 7 affect Samsung and its competitors?Publication . Yu-Yen, Shih; Cerqueiro, Geraldo Manuel AlvesThis dissertation aims to shed light on how the market responds to product crisis, in order to assist management levels in making strategy for potential loss. The product crisis of Samsung’s Galaxy Note 7 is used as an example to understand how it affected Samsung and its competitors, Apple and LG. Applying event study as methodology, the “explosion” and “voluntary recall” had no impact on Samsung’s stock but “involuntary recall and ban” as well as “termination” had negative impact. Stockholders also suffered more loss in “termination” than “involuntary recall and ban”, but less in “voluntary recall”. Considering direct cost, stockholders suffered more loss than expected, which indicates the existence of indirect cost, such as reputation and litigation. The competitors, LG and Apple, do not perform significant abnormal return by Galaxy Note 7´s event, thus they neither suffer nor benefit from the crisis. Regarding the aggregate effect, the market performs pessimistically toward the future profitability when authorities concerned announce “involuntary recall and ban".