Searching for the Value of Quality in Financial Services

Wharton Financial Institutions Center Working Paper No. 00-39

34 Pages Posted: 11 Jan 2001 Last revised: 21 Aug 2014

See all articles by Andreas C. Soteriou

Andreas C. Soteriou

University of Cyprus

Stavros A. Zenios

University of Cyprus; Durham University Business School; Cyprus Academy of Sciences, Letters, and Arts; Bruegel

Date Written: October 1, 2000

Abstract

In this paper we report results from a study which explores the impact of quality on performance in the financial services industry. Although some disagreement exists, the operations management, economics and marketing literature advocate a positive relationship between quality and financial performance. Recent strong evidence suggests that in order for such studies to be meaningful they must focus on individual industries. Our study focuses on the financial services industry and provides new insights on the relationship between quality and financial performance in this important service sector. Stock performance information is used to further explore this relationship. Through the results reported here we also identify the weaknesses inherent in existing stock-performance studies on the impact of quality and identify the methodological approaches that should be pursued in order to avoid such weakneses.

Keywords: Quality, event studies, financial performance, service sector, financial institutions

JEL Classification: G2, N20, M10, M20

Suggested Citation

Soteriou, Andreas C. and Zenios, Stavros A., Searching for the Value of Quality in Financial Services (October 1, 2000). Wharton Financial Institutions Center Working Paper No. 00-39, Available at SSRN: https://ssrn.com/abstract=251309

Andreas C. Soteriou

University of Cyprus ( email )

75 Kallipoleos Street
P.O. Box 20537
Nicosia CY-1678
CYPRUS

Stavros A. Zenios (Contact Author)

University of Cyprus ( email )

75 Kallipoleos Street
P.O. Box 20537
Nicosia CY-1678
Cyprus
+357 2 893605 (Phone)

HOME PAGE: http://https://www.researchgate.net/profile/Stavros_Zenios

Durham University Business School ( email )

Mill Hill Lane
Durham, DH1 3LB
United Kingdom

Cyprus Academy of Sciences, Letters, and Arts ( email )

Nicosia
Cyprus

Bruegel ( email )

Rue de la Charité 33
B-1210 Brussels Belgium, 1210
Belgium

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