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The financial impact of standard stringency: An event study of successive generations of the ISO 9000 standard

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  • McGuire, Stephen J.
  • Dilts, David M.
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    Abstract

    While ISO 9000 has been shown to improve internal metrics of firm performance, external measurements may be unaffected. This paper examines the economic value of successive generations of the ISO 9000 standard by assessing the equity returns of 204 firms certified between 1999 and 2002. This study also examines the economic effects of ISO 9001:2000 versus the superseded 1994 standards. The complete sample experienced no significant changes in stock price. The market reaction to ISO 9001:2000 certification is significantly more positive than the reaction to ISO 9000:1994 registration.

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    Bibliographic Info

    Article provided by Elsevier in its journal International Journal of Production Economics.

    Volume (Year): 113 (2008)
    Issue (Month): 1 (May)
    Pages: 3-22

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    Handle: RePEc:eee:proeco:v:113:y:2008:i:1:p:3-22

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    Web page: http://www.elsevier.com/locate/ijpe

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    Cited by:
    1. Lo, Chris K.Y. & Yeung, Andy C.L. & Cheng, T.C.E., 2009. "ISO 9000 and supply chain efficiency: Empirical evidence on inventory and account receivable days," International Journal of Production Economics, Elsevier, vol. 118(2), pages 367-374, April.
    2. Xin, Jenny Y. & Yeung, Andy C.L. & Cheng, T.C.E., 2010. "First to market: Is technological innovation in new product development profitable in health care industries?," International Journal of Production Economics, Elsevier, vol. 127(1), pages 129-135, September.
    3. David I. Levine & Michael W. Toffel, 2010. "Quality Management and Job Quality: How the ISO 9001 Standard for Quality Management Systems Affects Employees and Employers," Management Science, INFORMS, vol. 56(6), pages 978-996, June.
    4. Lin, Chin-Sen & Su, Chao-Ton, 2013. "The Taiwan national quality award and market value of the firms: An empirical study," International Journal of Production Economics, Elsevier, vol. 144(1), pages 57-67.
    5. Gilles Grolleau & Naoufel Mzoughi & Sanja Pekovic, 2013. "Is Business Performance Related to the Adoption of Quality and Environmental-Related Standards?," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 54(4), pages 525-548, April.
    6. Wiengarten, Frank & Pagell, Mark, 2012. "The importance of quality management for the success of environmental management initiatives," International Journal of Production Economics, Elsevier, vol. 140(1), pages 407-415.
    7. Ni, John Z. & Flynn, Barbara B. & Jacobs, F. Robert, 2014. "Impact of product recall announcements on retailers׳ financial value," International Journal of Production Economics, Elsevier, vol. 153(C), pages 309-322.

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