Extending the Horizons: Environmental Excellence as Key to Improving Operations
Manufacturing & Service Operations Management
Do online reviews affect product sales? The role of reviewer characteristics and temporal effects
Information Technology and Management
Certification in the Indian Offshore IT Services Industry
Manufacturing & Service Operations Management
Wake up or fall asleep-value implication of trusted computing
Information Technology and Management
Channel Stuffing with Short-Term Interest in Market Value
Management Science
Expert Stock Picker: The Wisdom of (Experts in) Crowds
International Journal of Electronic Commerce
Manufacturing & Service Operations Management
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This paper documents the long-run stock price performance of firms with effective Total Quality Management (TQM) programs. The winning of quality awards is used as a proxy for effective TQM implementation. We compare stock price performance of award winners against various matched control groups for a five-year implementation period and a five-year postimplementation period. During the implementation period there is no difference in the stock price performance, but during the postimplementation period award winners significantly outperform firms in the various control groups. Depending on the control group used, the mean outperformance ranges from 38% to 46%. Our results clearly indicate that effective implementation of TQM principles and philosophies leads to significant wealth creation. Furthermore, our results should alleviate many of the concerns regarding the value of quality award systems. Overall, these systems are valuable in terms of recognizing TQM firms and promoting awareness of TQM.