Stock price reaction on ISO 9001 certification announcement: evidence from Indonesia
Zaenudin Z., Kartika I., Kiryanto K.
Abstract
Purpose: Certification information published by a company will be responded by the market. Therefore, the purpose of this study is to examine the impact of ISO 9001 certification on the stock market reaction as indicated by stock returns reaction of companies in Indonesia. Design/methodology/approach: This study used event study method with the period of 13 days. It consists of 6 days before and after ISO 9001 certification announcement and 1 day at the time of the event. It analyzed by using pair sample t-test and one sample t-test. The stock return data is obtained from companies that are ISO 9001 certified and it tested for their stock reactions before and after the certification. Findings: The results of empirical research showed that the average and companies cumulative abnormal returns in Indonesia react quickly and positively on the first day after ISO 9001 certification announcement. This study proved the differences between abnormal returns before and after the ISO 9001 certification announcement period. Research limitations/implications: The company's success in implementing ISO 9001 will have an impact on investment in the capital market with a positive response from stock market players. The implication of this study is the further research can examine directly the impact of ISO 9001 implementation on investor behavior in the capital market. Originality/value: Based on the development of the literature review, this is the first study which examined the impact of ISO 9001 certification announcement on investor reactions in the short term. Therefore, companies in Indonesia need to implement a quality management system for investors in Indonesia.
No Title
Zainafree G.
ISO 9000 certification: The financial performance implications
Khumawala B.M., Kirche E.T., Wayhan V.B.
ISO 9000 quality management standards and financial investment services
Karapetrovic S., Willborn W.
The effect of certification with the ISO 9000 Quality Management Standard: A signaling approach
King A.A., Terlaak A.
The market response to implied debt covenant violations
Stice D.
Linking ISO 9000 certification to firm performance and financial crisis: a matched sample longitudinal analysis
Dimelis S., Siougle E.
Investigating the relationship between earnings and stock prices in companies accepted in the stock exchange: a case study in Iran (2000-2010)
Aghaei S.M.M., Shabani V., Shabani V.
A journey towards total quality management through ISO 9000 certification - a Singapore experience
Padibjo S.R., Quazi H.A.
White-collar crime and stock return: empirical study from announcement effec
Liew S.W., Puah C.
The impact of ISO 9001 effectiveness on the performance of service companies
Kafetzopoulos D.P., Pantouvakis A., Psomas E.L.
Ferreira L.M.F.R., Candido C.J.F.
Total Quality Management and Business Excellence
Wiroonratch B., Lim-u-sanno K., Suksakul P.
International Journal of Ebusiness and Egovernment Studies
Faturohman T., Ghazali M.H.
International Symposia in Economic Theory and Econometrics
Xiao S., Yu J.
Journal of Business Research
Saleem S., Kalimuthu K.
Advances in Decision Sciences
Niankara I.
Journal of Open Innovation Technology Market and Complexity
