Quality awards and the market value of the firm: An empirical investigation

Management Science

Volumn 42, Issue 3, 1996, Pages 415-436

  Hendricks, Kevin B ^a   Singhal, Vinod R ^a  

^a NONE

Author keywords

Event Study; Quality Awards; Stock Market Reaction; Total Quality Management; TQM

Indexed keywords

EID: 0001496179     PISSN: 00251909     EISSN: None     Source Type: Journal    
DOI: 10.1287/mnsc.42.3.415     Document Type: Article

References (34)

1. Abernathy, W. J., K. B. Clark, and A. M. Kantrow, "The New Industrial Competition," Harvard Business Rev., 59, 4 (1981), 68-81.
2. Banz, R. W., "The Relationship Between Return and the Market Value of Common Stocks," J. Financial Economics, 9 (1981), 3-18.
3. Barclay, M. J. and R. H. Litzenberger, "Announcement Effects of New Equity Issues and Use of Intraday Price Data," J. Financial Economics, 21, 1 (1988), 71-99.
4. Benson, P. G., J. V. Saraph, and R. G. Schroeder, "The Effects of Organizational Context on Quality Management: An Empirical Investigation," Management Sci., 37, 9 (1991), 1107-1124.
5. Black, F. and M. Scholes, "The Pricing of Options and Corporate Liabilities," J. Political Economy, 81 (1973), 637-659.
6. Brown, S. J. and J. B. Warner, "Using Daily Stock Returns, The Case of Event Studies," J. Financial Economics, 14 (1985), 3-31.
7. _ and _, "Measuring Security Price Performance," J. Financial Economics, 8 (1980), 205-258.
8. Buzzell, R. D. and F. D. Wiersema, "Modeling Changes in Market Share: A Cross-Sectional Analysis," Strategic Management J., 2 (1981), 27-42.
9. Craig, C. S. and S. P. Douglas, "Strategic Factors Associated with Market and Financial Performance," Quarterly Rev. Economics and Business, Summer 1982, 101-111.
10. Crosby, P. B., Quality is Free, McGraw-Hill, New York, NY, 1979.
11. Deming, E. W., Quality, Productivity and Competitive Position, MIT Center for Advanced Engineering, Cambridge, MA, 1982.
12. Dimson, E. and P. Marsh, "Event Study Methodology and the Size Effect: The Case of UK Press Recommendations," J. Financial Economics, 17 (1986), 113-142.
13. Dyckman, T., D. Philbrick, and J. S. Jens, "A Comparison of Event Study Methodologies Using Daily Stock Returns: A Simulation Approach," J. Accounting Res., 22 (Supplement 1984), 1-30.
14. Ernst & Young, International Quality Study: The Definitive Study of the Best International Quality Management Practices; Top-Line Findings, Ernst & Young, Cleveland, OH, 1991.
15. Fine, C. H., "Quality Improvements and Learning in Productive Systems," Management Sci., 32, 10 (1986), 1301-1315.
16. Gahlon, J. M. and J. A. Gentry, "On the Relationship Between Systematic Risk and the Degree of Operating and Financial Leverage," Financial Management, 11 (1982), 15-23.
17. Galai, D. and R. W. Masulis, "The Option Pricing Model and the Risk Factor of Stock," J. Financial Economics, 3 (1976), 53-81.
18. Gale, B. T. and B. S. Branch, "Concentration Versus Market Share," The Antitrust Bulletin, 27 (Spring 1982), 83-105.
19. Garvin, D. A., "Quality on the Line," Harvard Business Rev., 61, 4 (1983), 65-75.
20. Hamada, R. S., "The Effect of the Firm's Capital Structure on the Systematic Risk of Common Stocks," J. Finance, 27 (1972), 13-31.
21. Jarrell, G. and S. Peltzman, "The Impact of Product Recalls on the Wealth of Sellers," J. Political Economy, 93 (1985), 512-536.
22. Juran, J. M. and F. M. Gryna, Quality Planning and Analysis, McGraw-Hill, New York, 1980.
23. Kelly, K., "Quality: Small and Midsize Companies Seize the Challenge - Not a Moment Too Soon," Business Week, November 30, 1992, 66-69.
24. Lakonishok, J. and T. Vermaelen, "Anomalous Price Behavior Around Repurchase Tender Offers," J. Finance, 45 (1990), 455-477.
25. Lederer, P. J. and V. R. Singhal, "Effect of Cost Structure and Demand Risk in the Justification of New Technologies," J. Manufacturing and Oper. Management, 1 (1988), 339-371.
26. Lev, B., "On the Association Between Operating Leverage and Risk," J. Financial and Quantitative Analysis, 9 (1974), 627-642.
27. Malatesta, P. H. and R. Thompson, "Partially Anticipated Events: A Model of Stock Price Reactions with an Application to Corporate Acquisitions," J. Financial Economics, 14 (1985), 237-250.
28. McConnell, J. D., "An Experimental Examination of the Price-Quality Relationship," J. Business, October 1968, 439-444.
29. Peach, R. W., "Creating a Pattern of Excellence," Target, 6, 4 (1990), 15-22.
30. Phillips, L. W., D. Chang, and R. D. Buzzell, "Product Quality, Cost Position, and Business Performance: A Test of Some Key Hypotheses," J. Marketing, 47 (Spring 1983), 6-43.
31. Reinganum, M. R., "Misspefication of Capital Asset Pricing: Empirical Anomalies Based on Earnings Yield and Market Values," J. Financial Economics, 12 (1981), 19-46.
32. Riesz, P. C., "Price-Quality Correlation for Packaged Food Products," J. Consumer Affairs, 13, 2 (Winter 1979), 236-247.
33. Scholes, M. and J. Williams, "Estimating Betas from Nonsynchronous Data," J. Financial Economics, 5 (1977), 309-328.
34. Smith, C. M., "Applications of Option Pricing Analysis," in James L. Bicksler (Ed.), Handbook of Financial Economics, North-Holland Publishing Company, The Netherlands, 1979, 79-121.