Record Details

Do Satisfied Employees Lead To Better Financial Performance?

Research Journal of Economics, Business and ICT

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Field Value
 
Title Do Satisfied Employees Lead To Better Financial Performance?
 
Creator Saadullah, Shahriar; Qatar University, Doha
Rezaee, Zabihollah; niversity of Memphis
 
Subject —
Employee  Satisfaction , Social Responsibility , Market Performance,Financial Performance
J24 , L1 , L25
 
Description This paper analyzes whether companies with satisfied employees yield better long term financial performance than comparable  companies and whether the market values.employee satisfaction. We compare the Industry Adjusted Return on Assets (ROA) and Return on Equity (ROE) of the Fortune  100  Best  Companies  to  Work  for  from  1998­2003 with  the  ROA  and  ROE of comparable companies.  We do not find that the Fortune 100 Best Companies to Work for yield  a  higher return  than  comparable  companies.    Also, using  the  list  of  the  Fortune  100  Best  Companies  to  Work for  From  2002­2007,  we  test  the  market  reaction  by  using the  market  event  methodology  of  estimating  Cumulative Abnormal  Return  (CAR)  around  the  date  of  public announcement  of  the  list.  We  find  that  the  market  reacts positively  during  periods  of  economic  growth,  which  is consistent with the prior literature. However, we do not find any  significant  positive  or  negative  market  reaction  during economic  downturn.  This  study  adds  to  the  literature concerning  issues  surrounding  employee  satisfaction, Human Resources practices as one dimension of Corporate Social  Responsibility  (CSR)  and  organizations'  financial performance.
 
Publisher English Time Schools & Overseas Education
 
Contributor —
 
Date 2012-06-01
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://ojs.journals.cz/index.php/RJEBI/article/view/226
 
Source Research Journal of Economics, Business and ICT; Vol 5 (2012)
2047-7848
2045-3345
 
Language eng
 
Relation http://ojs.journals.cz/index.php/RJEBI/article/view/226/230
 
Rights Copyright (c) 2012 Shahriar Saadullah, Zabihollah Rezaee
https://creativecommons.org/licenses/by/3.0/