Quality awards and the market value of the firm: an empirical investigation
Article Abstract:
A study is conducted to examine whether the market value of a company changes after it wins a quality award. The stock market's reaction to the winning of such awards is analyzed by checking for 'abnormal' changes in the stock prices of award-winning firms on the day of the announcement. The study also seeks to determine whether a quality award affects the risk of a firm, and to detect abnormal behavior in the stocks of the awarded companies three years before and one year after winning the award. Findings show that stock market reaction to quality award announcement is generally positive, particularly when the winners are smaller companies and when the award was given by independent organizations such as Malcolm Baldrige and Philip Crosby. It is also found that, unlike larger companies, smaller firms do not experience negative performance before winner quality awards.
Publication Name: Management Science
Subject: Business, general
ISSN: 0025-1909
Year: 1996
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Delays in new product introductions and the market value of the firm: the consequences of being late to the market
Article Abstract:
A sample of 101 new product delay announcements are analyzed to estimate the magnitude of the economic impact of being late to the market. The economic impact is quantified by the change in the market value of the firm associated with the delay. The average abnormal change in the stock price for a sample of firms at approximately the date when information about the new product delay is made known to the public is measured via an event study methodology. Event study results suggest that the stock market reacts strongly to delay announcements in a negative manner. Delay announcements averagely decrease firm market value by 5.25%. The results indicate that significant penalties are attached to failure to introduce new products on time.
Publication Name: Management Science
Subject: Business, general
ISSN: 0025-1909
Year: 1997
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Does implementing an effecive TQM program actually improve operating performance? Empirical evidence from firms that have won quality awards
Article Abstract:
A study of corporations that have won awards for their implementation of Total Quality Management show that they outperform their competitors on income by as much as 48% and on sales by as much as 64%.
Publication Name: Management Science
Subject: Business, general
ISSN: 0025-1909
Year: 1997
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