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The Impact of Total Quality Management (TQM) on Financial Performance   

Evidence from Quality Award Winners  

TQM has been criticized for not bringing benefits to shareholders through increased stock price performance. Professors Kevin B. Hendricks and Vinod R. Singhal studied 3000 firms. They compared TQM firms to control groups of similar companies without formal TQM. The TQM firms fared significantly better in, profitability, Return on Assets and stock performance.

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