Delaying Vehicle Manufacturers' Recall Decisions- Risk, Vehicle, and Manufacturer Attributes
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This paper investigates the determinants of vehicle manufacturers’ decisions on recall timing. In particular, it identifies why some manufacturers delay in issuing recalls, while others issue them fast. This paper finds that the regulator mandates a recall if the recall is delayed. If recall costs are substantial and the defects are hazardous, then the recall is delayed. We also find that manufacturer and vehicle characteristics affect the timing of recall issuance. In particular, Japanese manufacturers tend to delay their recall issuance compared to U.S. manufacturers. Both Korean and European manufacturers are similar to U.S. manufacturers in deciding the recall timing.
Abstract
This paper investigates the determinants of vehicle manufacturers’ decisions on recall timing. In particular, it identifies why some manufacturers delay in issuing recalls, while others issue them fast. This paper finds that the regulator mandates a recall if the recall is delayed. If recall costs are substantial and the defects are hazardous, then the recall is delayed. We also find that manufacturer and vehicle characteristics affect the timing of recall issuance. In particular, Japanese manufacturers tend to delay their recall issuance compared to U.S. manufacturers. Both Korean and European manufacturers are similar to U.S. manufacturers in deciding the recall timing.
참고문헌 (22)
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