Employee satisfaction and long-run shareholder returns

    Authors

    C. H. Tang;J. E. Lee

    Comments

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    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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