China Quality Awards and the Market Value of Chinese Firms

• 1、College of Management and Economics, Tianjin University

Abstract：Quality has always been an important factor affecting the competitive advantage and financial performance of firms. With the influence of the quality award selection system expanding and this system being widely introduced by various countries, the impact of different quality awards on the firm\'s market value and the impact of quality awards on the firm\'s market value in different environments are not clear. The main purpose of this study is to estimate the impact of the China Quality Award on the firm\'s market value. Based on the available data of 55 winning China Quality Award events during 2013 to 2017, this paper uses the event study method to analyze whether the award winning firms had abnormal returns during the announcement period. The results show that the event of winning the China Quality Award caused a significant positive stock market reaction in the short-term. In addition, this paper studies some sub-sample categories and long-term effects of the award-winning events. The research results analyze the influence of China Quality Award on the market value of the award-winning firms from five aspects: firm characteristics, industry, regional economic level, first time award and competition ability, which provides a reference for investors\' investment direction.

Keywords： quality award market value event study CAR BHAR