Results of 1993–2002 Baldrige Award Recipients 10-Year Common Stock ComparisonMethodology: A hypothetical sum
was invested in each of the 1993–2002, publicly traded Baldrige
Award recipients’ common stock, in the year they applied for
the Award. The investment was tracked from the first business day of
the month following the announcement of the Award recipients, (or the
date when they began public trading, if it is later) through December
1, 2003. One thousand dollars was invested in each whole company, and
for subsidiaries the sum invested was $1,000 multiplied by the percent
of the whole company's employee base the subunit represented at the
time of its application. The same total dollar amount was invested
in the Standard & Poor's (S&P) 500 on the same day. If a subunit
was sold to another parent company, or if a company divested or merged,
it was the subunit whose progress was followed, not the parent company's
progress. The value of the original stock at the time of sale was determined
and that dollar amount was reinvested in the new parent company. 1993–2002 Publicly Traded Award Recipients
1993–2002 Publicly Traded Whole Company Award Recipients
Results of 1993–2002 Baldrige Site-Visited Applicants 10-Year Common Stock ComparisonMethodology: A hypothetical sum was invested in each 1993–2002 publicly traded, site-visited applicants’ common stock in the year they applied for the Award and received a site visit or in the year they became public. The investment was tracked from the first business day of the month following the announcement of the Baldrige Award recipients (or the date when they began public trading, if it is later) through December 1, 2003. One thousand dollars was invested in each whole site-visited company. For subsidiaries, the sum invested was $1,000 multiplied by the percent of the parent company's employee base the subunit represented at the time they received a site visit or at the time they became public as a result of a merger or acquisition by a new parent. The same total dollar amount was invested in the S&P 500 on the same day. Adjusting for stock splits, the value on December 1, 2003 was calculated. Information is reported two ways: all publicly traded, site-visited applicants and only whole company, site-visited applicants. (Note: a company may be included multiple times if they received more than one site visit. Site-visited applicants include those receiving an Award.) Names of Baldrige applicants are kept confidential. The 47 publicly traded, site-visited applicants, as a group, underperformed the S&P 500 by approximately 0.78 to 1, with a 46.26% return compared to a 59.17% return for the S&P 500. The six publicly traded, whole company, site-visited applicants underperformed the S&P 500 by about 0.68 to 1, with a 47.77% return compared to a 69.83% return for the S&P 500. A summary of the results follows.
1993 - 2002 Publicly Traded Whole Company Site Visited Award Applicants
AWARD RECIPIENTS INCLUDED IN THE STOCK STUDY
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