Long-Term Financial Effects of Quality Management System Maturity Based on ISO 9001 Principles
Author:Ana Kundid Novokmet and Andrijana Rogošić
JEL:G30, M41, L15
DOI:
Keywords:quality management, accounting information, financial performance, capital
structure theory, ISO 9001
Abstract:
Accounting information was often used to determine the effect of quality management
initiatives. Relation between quality management and financial performance of the
companies was extensively explored but with the conflicting results. The most recent
studies introduced intermediary factors between quality management and financial
performance. The objective of this paper is to determine the effect of quality management
system maturity of companies on their long-term financial performance. The empirical
research was conducted on the large-sized companies in Croatia that hold ISO 9001
certificate. The multivariate statistical analysis was used to support the hypothesis on
quality management system maturity adding to companies’ financial pe rformance. Results
confirmed that the companies with more mature quality management system have better
long-term financial outcomes (measured by EBIT margin, ROA, solvency ratio and
financial costs ratio) than the companies with the initial maturity stages of quality
management system.