While ISO 9000 has been shown to improve internal metrics of firm performance, external measurements may be unaffected. This thesis examines the economic value of ISO 9000 by assessing the equity returns and risk parameters of 204 firms certified between 1999 and 2002
and is the first to examine the economic effects of ISO 9001:2000 versus the superseded 1994
standards. The complete sample experienced no significant changes in stock price or idiosyncratic risk. The market value of small firms increased between 0.63% and 0.85% and is significantly more positive than the reaction of large firms. The market value of ISO 9001:2000 registered firms increased between 0.98% and 1.20%, which is significantly more positive than the market reaction to ISO 9000:1994. Small firms also experienced a market value increase during the calendar quarter following ISO 9001:1994 certification, but industry-wide movements could be an extenuating factor. Because these results suggest that on average ISO 9000 is not associated with positive stock price performance, managers must justify the associated implementation costs by other means. However, those financial justifications may have greater credence for smaller firms. Furthermore, the financial payoff may be greater if a firm becomes certified to a more stringent quality standard or a replacement for incumbent and less strict guidelines.
| Identifer | oai:union.ndltd.org:VANDERBILT/oai:VANDERBILTETD:etd-11032005-195141 |
| Date | 05 December 2005 |
| Creators | McGuire, Stephen John |
| Contributors | Craig M. Lewis, David M. Dilts |
| Publisher | VANDERBILT |
| Source Sets | Vanderbilt University Theses |
| Language | English |
| Detected Language | English |
| Type | text |
| Format | application/pdf |
| Source | http://etd.library.vanderbilt.edu/available/etd-11032005-195141/ |
| Rights | unrestricted, I hereby certify that, if appropriate, I have obtained and attached hereto a written permission statement from the owner(s) of each third party copyrighted matter to be included in my thesis, dissertation, or project report, allowing distribution as specified below. I certify that the version I submitted is the same as that approved by my advisory committee. I hereby grant to Vanderbilt University or its agents the non-exclusive license to archive and make accessible, under the conditions specified below, my thesis, dissertation, or project report in whole or in part in all forms of media, now or hereafter known. I retain all other ownership rights to the copyright of the thesis, dissertation or project report. I also retain the right to use in future works (such as articles or books) all or part of this thesis, dissertation, or project report. |
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