The financial impact of a withdrawn ISO 9001 certificate

Cândido, Carlos; Coelho, Luís; Peixinho, Rúben

doi:10.1108/ijopm-11-2014-0540

Cited by 61 publications

(68 citation statements)

References 56 publications

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“…This study employs the event study and control methodology to examine the impact of ISO 14001 on market performances of the certified firms, as proposed in a seminal work of Barber and Lyon (1996). This methodology has been extensively used by prior studies to investigate the financial performances of ISO standards (Corbett et al 2005;De Jong et al 2014;Candido et al 2016). This methodology can be used to compare the performances of the firms certified with the ISO 14001 standard with the firms without certification.…”

Section: Methodsmentioning

confidence: 99%

“…Prior researches identified previous performance and size of the firm as important factors that affect a company's performance (Carhart 1997;Fama and French 1996). Following prior literature (De Jong et al 2014;Candido et al 2016;Corbett et al 2005), we used ROA and total assets as control variables. The second problem associated with event study methodology is the cross-sectional dependency caused by overlapping time periods among the sample firms while evaluating long-term performance variables.…”

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confidence: 99%

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Valuation of Environmental Management Standard ISO 14001: Evidence from an Emerging Market

Riaz

Saeed

Baloch

et al. 2019

JRFM

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ISO 14001 (Environmental Management Standard) helps corporations to build legitimacy and goodwill, and can be also viewed as an organizational response to institutional pressure to act proactively towards the environment. The purpose of this paper is to investigate how investors in the emerging country value voluntary environmental management standard ISO 14001 certification. The impact of voluntary environmental management standard ISO 14001 on market performance is still not clear. By using event study methodology, this study matched ISO-certified firms with non-certified ones based on three different matching principles that include return on assets, size, and industry. The findings indicated that investors negatively valued ISO 14001 in both the short and long run. The study recommended policy implications for managers, policy makers, and non-government organizations.

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Section: Methodsmentioning

confidence: 99%

mentioning

confidence: 99%

Valuation of Environmental Management Standard ISO 14001: Evidence from an Emerging Market

Riaz

Saeed

Baloch

et al. 2019

JRFM

View full text Add to dashboard Cite

show abstract

“…A well-known proxy used in measuring operating performance is return on assets (ROA) [70,[86][87][88]. This financial indicator is defined as the capacity of all the assets, which are used by a company in operating activities, to generate future economic benefits [89] and is calculated as a ratio between operating income and total assets [87].…”

Section: Hypothesis Developmentmentioning

confidence: 99%

Sustainable Environmental Management System Integration and Business Performance: A Balance Assessment Approach Using Fuzzy Logic

et al. 2019

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Companies constantly thrive to enhance their performance in order to achieve their environmental, social, and economic goals. One way to achieve these goals is to integrate some effective management tools, such as an environmental management system (EMS), that can support sustainable development and value creation. Based on the literature, in this study some EMS integration dimensions were identified that can be used to assess its influence on business performance. The study was conducted on SMEs listed on the AeRO-Bucharest Stock Exchange that voluntary apply the ISO 14001 EMS, using a quantitative approach. To assess the EMS integration score, principal component analysis was used. Using logistic regression analysis, business performance probability (quantified by return on assets) was estimated for each company included in the final sample. Fuzzy logic was further used for modelling the influence of EMS integration on business performance probability. The research results showed that EMS integration has different effects on business performance probability, considering the influence of activity field and environmental management experience. This research assertion could be extended for all the listed Romanian companies or for major companies at the EU level.

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“…However, more recently, a new topic has emerged based on the stagnation of ISO 9001 certification expansion in recent years (ISO, 2014). Thus, the issue of ISO 9001 withdrawal or decertification phenomenon, remains under researched and the impact of decertification on financial performance needs to be further investigated (Cândido, Coelho and Peixinho, 2016).…”

Section: Literature Reviewmentioning

confidence: 99%

The Reasons for Decertification of ISO 9001: Financial Aspects

Kafel

Simon

2017

QIP Journal

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Purpose: The purpose of this paper is to analyse the financial performance of organizations that give up their QMS (Quality Management System) according to ISO 9001 certification. Different reasons found for the cancellation of ISO 9001 certification were taken into consideration. The decrease in certification of ISO 9001 standard is, during the past few years, noticeable in many countries. Therefore, there is a need to analyze the phenomena.Methodology/Approach: The study analyses financial performance of organizations and reasons of ISO 9001 certificates cancellation based on 99 Polish organizations, which gave up certification in years 2012 and 2013. The reasons of certificate cancelation were obtained from the quality managers of studied organizations. Financial performance was estimated on the basis of the ROA indicator value.Findings: The results show that in the studied organizations, there is a big group of companies that had financial problems. There were 28.8% of organizations that did not have profits at all, and 32.9% with a financial performance, calculated according to ROA indicator value, lower than the average for the industry in which studied organizations were operating. Surprisingly, there is no evident correlation between the reasons of ISO 9001 decertification and financial performance of these organizations.Research Limitation/implication: The data cover Polish organizations that give up ISO 9001 certification, and they were obtained only from one certification body. Survey data concerning the decision of decertification cover only a two-year period of time.Originality/Value of paper: The findings of our study might be helpful for the managers of organizations and certification bodies as well as for the researchers to describe the effectiveness of activities related to QMS implementation, certification and cancellation.

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The financial impact of a withdrawn ISO 9001 certificate

Cited by 61 publications

References 56 publications

Valuation of Environmental Management Standard ISO 14001: Evidence from an Emerging Market

Valuation of Environmental Management Standard ISO 14001: Evidence from an Emerging Market

Sustainable Environmental Management System Integration and Business Performance: A Balance Assessment Approach Using Fuzzy Logic

The Reasons for Decertification of ISO 9001: Financial Aspects

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