Does the Stock Market Fully Value Intangibles? Employee Satisfaction and Equity Prices

By Alex Edmans. 2011

2,120 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/c7a1141568cc11e3cb05a3ce42a3296b4ea32cca

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Citations in the corpus

Re-thinking complex orebodies: Consequences for the future world supply of copper (2019, background): “These dynamics are not recognised in market pricing (Edmans, 2011) and, once locked into development, companies as price-takers find themselves simultaneously managing multiple risks and keeping costs contained.”
ARE FAMILY FRIENDLY WORKPLACE PRACTICES A VALUABLE FIRM RESOURCE (2011, background): “…are only expected to translate into ‘hard’ performance measures like firm value (Perry-Smith and Blum, 2000; Arthur, 2003; Delaney and Huselid, 1996; Edmans, 2007) or accounting profits (Huselid, 1995; Huselid, Jackson, and Schuler, 1997) through ‘soft’ channels like organizational commitment…”
Corporate Social Responsibility and Stakeholder Value Maximization: Evidence from Mergers (2013, positive): “Our results are consistent with Edmans (2011, 2012), who shows that firms with high employee satisfaction realize long-term abnormal stock returns, and support the stakeholder value maximization view.”
Are employee-friendly workplaces conducive to innovation? (2016, methodology): “See Edmans (2011) for a more detailed explanation.”
Value-Enhancing Capabilities of CSR: A Brief Review of Contemporary Literature (2014, background): “These in turn assist firms in building a reputation as a good employer, which attracts better talent and motivates personnel (Roberts & Dowling, 2002; Edmans, 2011).”
Understanding and Contributing to the Enigma of Corporate Social Responsibility (CSR) Assurance in the United States (2015, background): “6 CSR initiatives can result in increased sales, customer loyalty, and higher quality, more productive, and more satisfied employees (Brown and Dacin 1997; Waddock and Graves 1997; Roberts and Dowling 2002; Banker and Mashruwala 2007; Lev et al. 2010; Edmans 2011).”
Employee Wellbeing, Productivity, and Firm Performance (2019, methodology): “To answer this question, Edmans (2011) studied the relationship between employee satisfaction and long-run stock returns using a value-weighted portfolio of the "100 Best Companies to Work for in America".35 The ratings are based on survey responses from a randomly chosen 250 employees per company…”
Corporate social responsibility and bank financial performance in China: The moderating role of green credit (2021, neutral): “And they formed two completely opposing views on this issue which support both the positive and negative in ﬂ uence of CSR (Edmans 2011; Krüger 2015; Flammer 2015; Saeidi et al. 2015).”
The Value of Corporate Culture (2013, positive): “We know from Edmans (2011) that firms included in the 100 “best firms to work for” (as measured by the GPTW ranking) tend to have a higher future abnormal stock market return.”
Climate Change, Firm Performance, and Investor Surprises (2019, positive): “[2006] for reviews) and on the quantity of hours worked [Graff-Zivin and Neidell, 2014]. In addition, some studies argue that the employee-related effects compound to economically relevant magnitudes that could explain the observed performance sensitivity at the firm level (e.g. Somanathan et al. [2”
Corporate Sustainability and Stock Returns: Evidence from Employee Satisfaction (2020, positive): “This set of results on employee satisfaction confirms the findings of Edmans (2011) and Green et. al., (2019) that finds employee satisfaction predicts future stock returns with similar economic magnitude.”
Measuring Corporate Culture Using Machine Learning (2020, methodology): ““100 Best Companies to Work for in America” list, and zero otherwise; the main criteria for appearing on the list are job satisfaction, fairness, and camaraderie (see Edmans (2011) and our Appendix for details).”
Organization capital and firm life cycle (2018, background): “Brynjolfsson et al. (2002) and Edmans (2011) note that the market value of a firm may differ markedly from the value of its tangible assets alone, as investors attempt to incorporate intangible assets into their valuations of firms.”
Peer Effects of Corporate Social Responsibility (2019, positive): “…the focal firm’s stock returns, long-term operating performance (Flammer (2015a)), acquirer return and postmerger performance (Deng, Kang, and Low (2013)), reduction of capital costs (e.g., Dhaliwal et al. (2011), El Ghoul et al. (2011)) and improvement of employee productivity (Flammer (2015b)).”