Title: The Financial and Market Impact of Catastrophic Product Failure

Speaker: REDDY Karempudi Srinivas, Professor of Marketing, Lee Kong Chian School of Business,

Singapore Management University

Time: 1:30-3:00pm, Feb. 29, 2012

Location: Room 216, New Building of GSM, Peking University

Abstract

In this research, we investigate the financial and market impact of catastrophic product failure.

Apart from the huge financial impact (in terms of loss of market cap) that we normally observe

when such an event occurs, there is a potential spillover impact on other brands of the firm. In

addition, the failure might have an impact on competitors’ brands. We investigate these effects in

the pharmaceutical industry where over 20 FDA approved drugs have to be withdrawn from the

market.

Welcome to attend!