Document details

Do “The Best Companies to Work” have higher Stock returns?

Author(s): Roque, Mariana Pereira

Date: 2016

Persistent ID: http://hdl.handle.net/10400.8/2323

Origin: IC-online

Subject(s): Valor da empresa; Satisfação no trabalho; Melhores empresas para trabalhar; Carhart; Modelo quatro-fatores; Valor da empresa; Satisfação no trabalho; Melhores empresas para trabalhar; Carhart; Modelo quatro-fatores; Domínio/Área Científica::Ciências Sociais::Economia e Gestão; Domínio/Área Científica::Ciências Sociais::Economia e Gestão; Domínio/Área Científica::Ciências Sociais::Economia e Gestão


Description

Do “The Best Companies to Work” have Higher Stock Returns? The main purpose of this work is to prove the link between job satisfaction and the firm’s value. The «Best Companies to Work» list give us our measure for job satisfaction. The sample of this work is composed by firms listed in STOXX Europe 600 Index. We compared the monthly returns of a portfolio composed by firms present in the «Best Companies to Work» list with two other benchmark portfolios, using the four-factor model proposed by Carhart (1997), from January 2010 to December 2014. Our results show that the BCWE600 portfolio outperforms both benchmark portfolios. In other words, companies classified as Best Companies to Work generated 0.40%/month and 4.94%/year higher stock returns than their peers over the 2010-2014 period. Also, the market risk in portfolio BCWE600 is inferior compared to other portfolios. This work shows that firms with the most satisfied workers get better results, resulting in higher returns for it’s shareholders.

Document Type Master thesis
Language English
Advisor(s) Jorge, Maria João da Silva; Oliveira, Célia Patrício Valente
Contributor(s) Roque, Mariana Pereira
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