Iso9000 Certification And Corporate Performance Empirical Research

Along with the economic globalization and era of knowledge economy's arrival, the international market has become more and more competitive. As a laissez-passer of entering international market, ISO9000 certification has been adopted by a lot of enterprise. In recent five years, there are 560,000 certified companies in Europe and America, while there are more than 390,000 ones in China. However, some problems emerged in Chinese certifications, such as, several certification bodies' irresponsible behaviors, some certified companies' inconspicuous performances and a part of Chinese enterprise's doubts for the certification effect.Whether can ISO9000 certification bring more benefits to certified companies or not? That has attracted many quality scholars' attention. There are many articles to investigate empirically the certification performance overseas. Despite there being many researches for ISO9000 certification, most of them are limited to qualitative analysis, especially, it is rare seen the empirical study for ISO9000 certification effect on Chinese firms' performance.Based on foreign study experience, this article analyzed empirically the certification effect on market performance and operation performance. First, the write introduces the development of ISO9000 certification. The cause and performance of certification suggested the environment and problem faced by Chinese enterprise. Secondly, the write defined market performance and operation performance of certification with the theory of certification and performance. About the reaction of the stock market to certification, this article measured market performance by abnormal returns. Then we use the Chinese list companies as the samples to analyze market performance in different event times. There are positive abnormal returns in event days, which suggest that certification has some effect to market performance in the short-term. From a long standpoint, the relation between certification and performance has a positive trend. As far as the financial impact of certification, this study took GRPROFIT, ROA and GROS as a basic measurement, in order to analyze whether ISO9000 certification exerts any statistically significant impact on any of the performance measures described above by means of Independent-Samples T Test. Our results indicate that there is not a significant difference in financial performance between the firms adopting ISO9000 certification and the ones not. But from a long term, the certification will provide superior performance for the firms.The characteristic and innovation of this article lies in:①analyzed the effect of ISO9000 certification on firm's performance, which was different from case study or anticipation;②employed event-study methods and the financial data of Chinese list companies;③studied the short-term and long-term firm's performance from the market and financial vision.This article supplies an empirical analysis for investigating the relation between certification and company performance, which is applied. And the theory and method used in this paper also is helpful to other empirical study.