Publicação
Does employee satisfaction impact firms stock performance?: a study of the “100 best companies to work for in America”
| Resumo: | The impact of Corporate Social Responsibility in companies’ financial performance has been a very popular topic among researchers. This is indeed a convenient subject for corporations – to take care of all its stakeholders and by that being able to achieve a superior performance. This study emphasises one specific segment of corporate social responsibility: the concern with employees. “Does employee satisfaction impact firms’ stock performance?” is the question asked in this Dissertation. We depart the evidence of Edmans (2011) and Carvalho & Areal (2016). The authors find evidence that there is money left on the table: information about intangibles such as employee satisfaction that is not completely incorporated into stock prices. The “100 Best Companies to Work for in America” also generate financial overperformance. We corroborate the authors' findings on abnormal performance for the same period (1998-2010), even using different benchmarks. However, we show that employee satisfaction information has been incorporated in prices. We argue that the disclosure of rankings such as the “100 Best Companies to Work for in America” as well as academic studies about its impact on companies’ performance generate more efficient prices. Considering the period 1998-2017, top-ranked companies show neutral performance. However, low-ranked companies still generate positive abnormal performance, which means that the information on the value of intangibles is not completely incorporated in stock prices. |
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| Autores principais: | Rodrigues, Mariana Miranda |
| Assunto: | Ciências Sociais::Economia e Gestão |
| Ano: | 2018 |
| País: | Portugal |
| Tipo de documento: | dissertação de mestrado |
| Tipo de acesso: | acesso restrito |
| Instituição associada: | Universidade do Minho |
| Idioma: | inglês |
| Origem: | RepositóriUM - Universidade do Minho |
| Resumo: | The impact of Corporate Social Responsibility in companies’ financial performance has been a very popular topic among researchers. This is indeed a convenient subject for corporations – to take care of all its stakeholders and by that being able to achieve a superior performance. This study emphasises one specific segment of corporate social responsibility: the concern with employees. “Does employee satisfaction impact firms’ stock performance?” is the question asked in this Dissertation. We depart the evidence of Edmans (2011) and Carvalho & Areal (2016). The authors find evidence that there is money left on the table: information about intangibles such as employee satisfaction that is not completely incorporated into stock prices. The “100 Best Companies to Work for in America” also generate financial overperformance. We corroborate the authors' findings on abnormal performance for the same period (1998-2010), even using different benchmarks. However, we show that employee satisfaction information has been incorporated in prices. We argue that the disclosure of rankings such as the “100 Best Companies to Work for in America” as well as academic studies about its impact on companies’ performance generate more efficient prices. Considering the period 1998-2017, top-ranked companies show neutral performance. However, low-ranked companies still generate positive abnormal performance, which means that the information on the value of intangibles is not completely incorporated in stock prices. |
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