Quality management systems certification: Research note

Raymond S Y CHAN*

*Corresponding author for this work

    Research output: Contribution to journalJournal articlepeer-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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