Are Awards always Rewards? A Theoretical Review

This study reviews whether award-winning firms show improved performance and receive a positive reaction from the market in accordance with theoretical expectations. The market anticipates that award winners and certified firms will achieve more positive performance compared to other firms within an industry. However, the existing literature shows inconsistent results. As the authors of this study, we attempt to assess whether being awarded or receiving certification adequately compensates the firm’s efforts to obtain such achievements. Furthermore, we strive to provide the rationale to explain why the results of previous studies are inconsistent. Finally, we offer four propositions to effectively investigate the association between such achievements and the reactions of the market and the firm's performance.