Assessing the financial effects of adopting multiple certifications

Purpose – The aim of this article is to research into the effects of multiple certifications on firms’ financial performance by considering the dynamics involved in this process.
Design/methodology/approach – 243 Portuguese companies that had adopted multiple certifications by 2015 among ISO 9001, ISO 14001 and OHSAS 18001 were analyzed with their historical records from 2007 to 2015. The research into the causal effects of the certifications on firms’ return on assets (ROA) was based on a panel dynamic approach, namely the system generalized method of moments.
Findings – Firms holding ISO 9001, ISO 9001 + ISO 14001, ISO 9001 + OHSAS 18001 and ISO 9001 + ISO 14001 + OHSAS 18001 significantly improved their ROA in the studied period due to the certifications.
Practical implications – Investors and top-managers shall consider certifications as a potential source of firms’ improvement. To this end, ISO 9001 could be the reference for
incorporating the other standards into a more efficient and integrated management system.
Originality/value – To the best of the authors’ knowledge, this is one of the first studies
simultaneously considering the dynamics involved in the adoption of multiple certifications and firm performance.

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ISO 9001, ISO 14001, OHSAS 18001, financial performance