ISO certification, financial constraints, and firm performance in Latin American and Caribbean countries

Barkat Ullah, Zuobao Wei and Feixue Xie

Global Finance Journal, 2014, vol. 25, issue 3, 203-228

Abstract: We employ World Bank Enterprise Survey data collected in 2006–2010 for 21,852 firms from 31 Latin American and Caribbean countries to investigate determinants of the adoption of International Organization for Standardization (ISO) certification, the relation between ISO certification and firm financial constraints, and the effect of ISO certification on firm performance. We find that ISO accreditation is positively related to firm size and firm age. Exporters and foreign firms are more likely to adopt ISO certification. We document that ISO-certified firms exhibit significantly lower level of financial constraints and higher labor productivity and lower cost of sales than non-certified firms.

Keywords: ISO certification; Financial constraint; Firm performance; International standard; Latin America; Caribbean countries (search for similar items in EconPapers)
JEL-codes: G32 L15 L25 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (25)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:glofin:v:25:y:2014:i:3:p:203-228

DOI: 10.1016/j.gfj.2014.10.003

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