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Finance and Financial Management Commons

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1999

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Institution
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Articles 61 - 61 of 61

Full-Text Articles in Finance and Financial Management

Revisiting The Stock Price Impact Of Quality Awards, Gregory L. Adams, Grant Mcqueen, Kristie Seawright Jan 1999

Revisiting The Stock Price Impact Of Quality Awards, Gregory L. Adams, Grant Mcqueen, Kristie Seawright

Faculty Publications

In an event study, Hendricks and Singhal [Hendricks KB, Singhal VR. Quality awards and the market value of the firm: an empirical investigation. Management Sci 1996;42:415±36.] find evidence that firms that win quality awards are further rewarded with a stock price increase on the day of the award announcement. We revisit Hendricks and Singhal (1996), extend their research and find four reasons why management, owners and analysts should be cautious about expecting an abnormal return when a firm wins a quality award. First, in our sample of Baldrige Award winners, the evidence of a stock price response on the announcement …