This study investigated the financial performances of environmental policy by using the long-term effect of ISO 14001 certification. Drawing on a natural-resource-based view of the firm, this study examined abnormal performances of ISO 14001 certified firms on the New York Stock Exchange (NYSE) and National Association of Securities Dealers Automated Quotations (NASDAQ) in the USA during the period 1996-2010 employing a rigorous event study methodology. The results indicate that the profitability variables showed immediate positive abnormal effects after firms applied for the ISO 14001 certification, while the market benefit variable showed gradual improvements after obtaining the certification. However, ISO 14001 did not show significant effect on the internal process improvement. Overall, ISO 14001 was found beneficial to the firm in the long run from the perspectives of profitability and market benefits.
The purpose of this study is to investigate the impact of four travel risk factors (natural disaster risk, physical risk, political risk, and performance risk) on traveler groups with different characteristics and the relationship among these risk factors, travel satisfaction, and travelers' repurchase intention. For the research purpose, this study analyzed the data from passengers of a major international airline. The results suggest that traveler groups with different characteristics (gender, airline seat class, travel purpose, travel destination, travel duration, travel companion, and income level) respond differently to some risk factors, while they show the same response to other risk factors. The results also show that each risk factor affects travel satisfaction and repurchase intention differently. These findings imply that airlines should develop different strategies based on risk factors and travelers' characteristics.
Purpose
– The purpose of this paper is to investigate the long-term financial effects of open innovation in the manufacturing industry.
Design/methodology/approach
– Drawing upon an open innovation literature, this study examined 671 open innovation announcements made by firms listed on the New York Stock Exchange and National Association of Securities Dealers Automated Quotations during 2003-2012. By employing the event study, the long-term financial performances of the firms that announced open innovation were measured using six dependent performance variables (ROA, ROS, Tobin’s Q, Cost ratio, Sales growth, Asset turnover).
Findings
– The results indicate that open innovation in the manufacturing industry may lead to long-term improvements in firm profitability, triggering a positive reaction by stockholders. Open innovation also decreased production costs and increased sales volume over the long run. In all, open innovation was found to be beneficial to the firm in terms of profitability, production process improvement, and market benefits.
Originality/value
– This paper is the first longitudinal empirical study to investigate the long-term effects of open innovation in terms of US manufacturing financial performance. It contributes to the body of knowledge by complementing previous open innovation studies, which generally focus on context-specific issues.
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