University of Sydney Business School study links universal demand laws in US states to 30% reduced product recalls and 50% longer delay in announcements.

The University of Sydney Business School study found that US states with universal demand laws, which make it difficult for shareholders to sue company directors, result in firms being 30% less likely to recall potentially dangerous products. These states also see a 50% longer delay in product recall announcements. The presence of institutional investors and customer-focused cultures can help mitigate the effects of these laws.