Company Financial Performance and ISO 9000 Registration: Evidence from Malaysia

Mokhtar, Mohd Zulkifli; Karbhari, Yusuf; Naser, Kamal

doi:10.1080/13602380500068441

Cited by 8 publications

(8 citation statements)

References 20 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Sharma (2005) Financial performance of certified firms was significantly greater than that of non-certified firms. Mokhtar et al (2005) ISO 9000 companies performed better than non-ISO 9000 companies. Terlaak and King (2006) There was no significant effect of ISO 9000 on operational performance.…”

Section: Discussionmentioning

confidence: 99%

“…The large majority of studies in Table 1 conclude that ISO 9001 certification has a positive and significant impact on firms' financial performance (Simmons and White, 1999;Chow-Chua et al, 2003;Mokhtar et al, 2005;Naveh and Marcus, 2007;Nair and Prajogo, 2009;Pantouvakis and Dimas, 2010;Gómez et al, 2013;Psomas et al, 2013;Fatima, 2014;Psomas and Kafetzopoulos, 2014;Chatzoglou et al, 2015) and on firms' stock prices (Docking and Dowen, 1999;Beirão and Cabral, 2002;Nicolau and Sellers, 2002;Corbett et al, 2005;Sharma, 2005;McGuire and Dilts, 2008). Despite the fact that some of the longitudinal studies have found supporting evidence in favor of causality between ISO 9001 certification and financial performance (e.g., Corbett et al, 2005;Benner and Veloso, 2008), other studies note that the positive correlation between these two variables does not mean causality between them (see Heras et al, 2002b;Dick et al, 2008).…”

Section: Previous Studies On Iso 9001 and The Financial Impact Of Cermentioning

confidence: 99%

See 1 more Smart Citation

The financial impact of a withdrawn ISO 9001 certificate

Cândido

Coelho

Peixinho

2016

International Journal of Operations &Amp; Production Management

View full text Add to dashboard Cite

Purpose -The purpose of this paper is to assess to what extent the loss of the ISO 9001 certification affects the decertified firms' financial performance.Design/methodology/approach -Using standard event-study methods, this paper matches a sample of 143 Portuguese companies that lost their ISO 9001 certification with similar nonevent counterpart firms (according to return-on-assets and size) and compares the performance of these two groups of firms using financial data collected from the AMADEUS database.Findings -Results show no statistical significant differences in the financial performance (as measured by return-on-assets, return-on-sales, and sales growth) between companies that lost their ISO 9001 certification and their matched firms. Although the literature suggests that certification improves firms' performance and that the benefits of certification may last over long periods of time, this paper's results suggest that, after decertification, companies do not exhibit over or underperformance in their operations vis-à-vis comparable firms that do not undergo the same event.Originality/value -As far as the authors are aware, this is the first study assessing the impact of ISO 9001 certificate withdrawal on the decertified firms' financial performance.

show abstract

Section: Discussionmentioning

confidence: 99%

Section: Previous Studies On Iso 9001 and The Financial Impact Of Cermentioning

confidence: 99%

The financial impact of a withdrawn ISO 9001 certificate

Cândido

Coelho

Peixinho

2016

International Journal of Operations &Amp; Production Management

View full text Add to dashboard Cite

show abstract

“…The higher the ROA figure the better it is seen as the company is earning more money on less invested company. Among the researchers that used ROA are, Mokhtar et al (2005) and Corbett et al (2002), found that after ISO 9000 certification, companies tended to report abnormal improvements in ROA and more importantly, these improvements were found to be lasting.…”

Section: Measures Of Financial Corporate Performancementioning

confidence: 99%

“…EVA is a way of evaluating a company's real profitability and how effectively it is performing. Among the researchers that used EVA as their performance measures include, Perkins and Van Zyl (1994); Pat (1995); Naser et al (2004);and Mokhtar et al (2005). Naser et al (2004) employed EVA as one of their measures of company performance.…”

Section: Economic Value Added (Eva)mentioning

confidence: 99%

Comparative Study on Performance Measures and Attributes between ISO and Non-ISO Certification Companies

Mokhtar

Muda

2012

IJBM

Self Cite

View full text Add to dashboard Cite

This study surveys a sample of 162 public listed companies on the Kuala Lumpur Stock Exchange. The study utilises eight different measures of company performance, ROA, ROE, WC, ROS, CF, TQ and EVA, and five company's attributes, namely size, growth. capital structure, age and industrial category. The analyses revealed that ISO registered Malaysian companies outperformed their non-ISO registered counterparts during the period of this study. This study finds that ISO 9000 registered companies in Malaysia are better off than non-ISO 9000 registered companies in terms of performance measures ROA, ROS and WC, except for EVA. ISO 9000 registered companies are younger, larger, and have a higher growth and a lower capital structure than non-ISO 9000 registered companies.

show abstract

“…Artz et al (2010) use the ROA and sales growth as measures of firm performance. Mokhtar et al (2005) use nine different measures of corporate performance, of which they find the ROA (return on assets), EVA (economic value added) and industry category to be the most significant determinants of corporate performance. Hunton et al (2003) use the ROA (return on assets), ROS (return on sales), ROI (return on investments) and ATO (asset turnover) as metrics of firm performance.…”

Section: Introductionmentioning

confidence: 99%

The Impact of Research and Development on the Financial Sustainability of Information Technology (IT) Companies Listed on the S&P 500 Index

Dave¹,

Wadhwa²,

Aggarwal³

et al. 2013

JSD

View full text Add to dashboard Cite

This paper attempts to determine the impact of research and development (R&D) expenditure on the financial sustainability of the IT industry as represented by the IT companies listed on the S&P 500 index. The impact of R&D expenditure on the intermediate variables of marketing performance, gross margin and technological performance is first ascertained. Further, the impact of each of these intermediate variables on financial sustainability, i.e. the return on assets (ROA), is determined. The empirical result shows that financial sustainability is most strongly affected by gross margins, which in turn are strongly impacted on by R&D (Note 1) intensity. R&D expenditure has a positive impact on sales revenues but a negative impact on technological performance. However, technological performance has a positive impact on financial sustainability. The non-availability of the decomposition of R&D expenditure in the annual reports of these companies poses a limitation to our research. Further, the impact of the time lag between the point at which R&D expenditure is incurred and the point at which it starts to contribute to financial sustainability varies from firm to firm, thereby making it difficult to ascertain the impact of R&D on financial sustainability. However, the results from our study pinpoint a very significant relationship between R&D intensity and gross margins. This also forms the backbone of the pricing strategy formulated by IT companies. Further, there is a very significant relationship between gross margins and financial sustainability, which is measured by ROA (Note 2).

show abstract

Company Financial Performance and ISO 9000 Registration: Evidence from Malaysia

Cited by 8 publications

References 20 publications

The financial impact of a withdrawn ISO 9001 certificate

The financial impact of a withdrawn ISO 9001 certificate

Comparative Study on Performance Measures and Attributes between ISO and Non-ISO Certification Companies

The Impact of Research and Development on the Financial Sustainability of Information Technology (IT) Companies Listed on the S&P 500 Index

Contact Info

Product

Resources

About