Quality management systems certification: Research note

Raymond S Y CHAN*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

3 Citations (Scopus)


Although International Quality Standards 9000 certification is one of the most popular quality assurance systems in the world, its contribution to a firm’s value is still a controversial issue. This project re-examines this issue by using stock market reactions to the announcements of the award of certification made by a sample of Hong Kong listed companies, as a proxy for its contribution to a firm’s value. The results suggest that on average certification increased a firm’s value. However, most of this value increase was incorporated into stock prices before formal announcements were published in newspapers. In addition, the contribution of certification to value was greater in smaller firms than in larger ones. This can be attributed to fewer stock traders and professional analysts following smaller firms.

Original languageEnglish
Pages (from-to)248-266
Number of pages19
Issue number2
Publication statusPublished - Jun 2001

Scopus Subject Areas

  • Accounting


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