Wealth Effects of the Passage of the Nutrition Labeling and Education Act of 1990 for Large U.S. Multinational Food Corporations

Abstract

In this article, the authors investigate the wealth effects of the passage of the food labeling regulation issued by the United States Nutritional Labeling and Education Act for a sample of large U.S. multinational food corporations using a standard event study methodology. The results show an adverse impact on shareholders’ wealth around the Act's passage dates. The evidence is of significant value to policymakers and market participants as additional food labeling-related legislation is contemplated.

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