Employee Satisfaction and Long-Run Shareholder Returns

Keywords

employee satisfaction, shareholder returns, long-run, process type

Abstract

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.

Publication Date

8-4-2014

Original Citation

Tang, C.H., & Lee, J. (2014). Employee satisfaction and long-run shareholder returns, The Service Industries Journal, 34(14), 1167-1183.

Number of Pages

1167-1183

Document Type

Paper

Language

English

Source Title

Service Industries Journal

Volume

34

Issue

14

College

Rosen College of Hospitality Management

Location

Rosen College of Hospitality Management

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