An Empirical Study of China Quality Award on Firms Market Value--Based on the dada from Chinese Stock Market
This paper empirically investigates the relation between China Quality Award and the market value of the firm by a sample of public listed companies that have won China Quality Award from 2001 to 2005 in the mainland of China. Our results show that the award winners experienced remarkably positive abnormal returns on the day of announcement ranging from 0.55％ to 0.77％ depending on the model used to generate the abnormal returns. According to Hendricks and Singhal (1996), winning a quality reward conveys the information about the systematic risk of the firm. However, we havent found a statistically decrease in the equity and asset betas after the quality award announcement. Finally, the factors that affect abnormal returns are investigated, empirical results show that debt ratio of the firms and the award prestige have an significant impact on abnormal returns, however, the firm size doesnt play an important role on abnormal returns.
Quality Award ISO Certification Firm Value Abnormal Return Event Study
BU Xiang-zhi CHEN Rong-qiu BU Xiang-zhi XIAO Shang-xian
School of Management Huazhong University of Science and Technology Wuhan 430074,China School of Business Shantou University Shantou 515063, China
国际会议
上海
英文
2007-09-21（万方平台首次上网日期，不代表论文的发表时间）