Quality management : does it really pay?

Abstract

This is an empirical study on publicly available data that sought to investigate the possible

existence of relationship between Quality Management (TQM) and common stock performance.

The earlier part of the text describes how and why much emphasis has been placed on the Quality

Management, as well as providing a probable explanation for such a phenomenon. The latter half

of the report records the detailed statistical test methods, where the realised residuals of the

sample stock returns are regressed against the SESALL share index over a period of 24 months.

The final portion of the text summarizes the findings of the Chi-Square as well as the Student T

tests conducted, before concluding that there exists a positive relationship between TQM and

common stock performance.