Title

Employee satisfaction and long-run shareholder returns

Authors

Authors

C. H. Tang;J. E. Lee

Comments

Authors: contact us about adding a copy of your work at STARS@ucf.edu

Abbreviated Journal Title

Serv. Ind. J.

Keywords

employee satisfaction; shareholder returns; long-run; process type; ABNORMAL STOCK RETURNS; SERVICE-PROFIT CHAIN; CUSTOMER SATISFACTION; PERFORMANCE; PROFITABILITY; INDUSTRIES; QUALITY; CONSEQUENCES; INTANGIBLES; STRATEGIES; Management

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.

Journal Title

Service Industries Journal

Volume

34

Issue/Number

14

Publication Date

1-1-2014

Document Type

Article

Language

English

First Page

1167

Last Page

1183

WOS Identifier

WOS:000340370400004

ISSN

0264-2069

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