Resolving Information Asymmetries in Markets: The Role of Certified Management Programs

摘要: In this paper, I conduct one of the first evaluations a voluntary management program that features an independent verification mechanism to determine whether it is achieving its ultimate objectives. Using sample thousands manufacturing facilities across United States, find evidence ISO 14001 Environmental Management System Standard has attracted companies with superior environmental performance, and adoption leads further performance improvement. This contrasts sharply findings from prior programs lacked mechanisms. suggests mechanisms such as certification may be necessary for mitigate information asymmetries surrounding difficult-to-observe practices. Implications are discussed industry-associations, government agencies, non-governmental organizations design these programs, investing resources adopt those relying on them credible signal The substantial variation in magnitude significance results comparison groups metrics highlights need researchers robustness tests when evaluating programs.