Crowdsourced employer reviews and stock returns

By T. C. Green, Ruoyan Huang, Quan Wen, Dexin Zhou. Journal of Financial Economics, 2019

226 citations recorded by the source corpus.

Abstract We find that firms experiencing improvements in crowdsourced employer ratings significantly outperform firms with declines. The return effect is concentrated among reviews from current employees, stronger among early firm reviews, and also stronger when the employee works in the headquarters state. Decomposing employer ratings, we find the return effect is related to changing employee assessments of Career Opportunities and views of senior management. It is unrelated to work-life balance. Employer rating changes are associated with growth in sales and profitability and help forecast one-quarter-ahead earnings announcement surprises. The evidence is consistent with employee reviews revealing fundamental information about the firm.

Subfields: Accounting, Management Science and Operations Research, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/dc9008cd5e40fe30ea02786650c143228a0f8aa2

Citations in the corpus

• Corporate Sustainability and Stock Returns: Evidence from Employee Satisfaction (2020, unknown): “and also have a human go through the content to eliminate invalid reviews (Green et al., 2019).”
• Measuring objective and subjective well-being: dimensions and data sources (2020, unknown): “[239] use the crowdsourced employer reviewwebsite namedGlass-”