The article presents research on collaboration between business enterprises to set standards for information technology examining if such cooperation reduces the financial risks faced by stockholders of the individual companies involved. It was found that an increase in the number of companies involved in cooperation on standards decreased the market risk on stockholder rate of return as measured by beta, but increased the idiosyncratic risk to the individual firms' returns. This indicates companies elected to participate in a large standardization project obtain a reduction in abnormal returns on stocks.