Employee satisfaction and long-run shareholder returns
Abbreviated Journal Title
Serv. Ind. J.
employee satisfaction; shareholder returns; long-run; process type; ABNORMAL STOCK RETURNS; SERVICE-PROFIT CHAIN; CUSTOMER SATISFACTION; PERFORMANCE; PROFITABILITY; INDUSTRIES; QUALITY; CONSEQUENCES; INTANGIBLES; STRATEGIES; Management
This study empirically tests whether there are differences in the employee satisfaction premium among people-and possession-processing service firms, information-processing service firms, and goods-producing firms. The employee satisfaction premium is measured using the long-run abnormal returns of firms with high employee satisfaction ratings, adjusted for industry and size effects. Results show that the employee satisfaction premium is higher for information-processing services than for people-and possession-processing services. There is no significant difference between people-and possession-processing service firms and goods-producing firms. This finding suggests that employee satisfaction may create higher value for shareholders when it is realised through information-processing services rather than people-and possession-processing services.
Service Industries Journal
"Employee satisfaction and long-run shareholder returns" (2014). Faculty Bibliography 2010s. 6160.