1/11/2016

The Department of Banking and Financial Management announces the upcoming seminar with Prof. Chendi Zhang, WBS, University of Warwick

Prof. Chendi Zhang will present:

Employee satisfaction, labor market flexibility and stock returns around the world

ABSTRACT:

We study the relationship between employee satisfaction and firm performance around the world, using lists of the “Best Companies to Work For” in 14 countries. Employee satisfaction is associated with superior long-run returns, current valuation ratios, future profitability, and earnings surprises in flexible labor markets, such as the US and UK, but not rigid labor markets, such as Germany. These results are consistent with employee satisfaction improving recruitment, retention, and motivation in flexible labor markets, where firms face fewer constraints on hiring and firing. In rigid labor markets, legislation already provides minimum standards for worker welfare and so additional expenditure may exhibit diminishing returns. The findings have implications for the differential profitability of socially responsible investing strategies around the world – in particular, the importance of considering institutional factors when forming such strategies.

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2461003

More upcoming Seminars 2016:

November 10, 2016

Ulf Axelson, LSE

November 24, 2016

Alexander Hillert, University of Mannheim

ALL FINANCE SEMINARS