Susanne Arvidsson
Associate professor, Centre Director
Job Satisfaction and Investment Efficiency – Evidence from Crowdsourced Employer Reviews
Author
Summary, in English
This study investigates the effect of job satisfaction on investment efficiency. To operationalize job satisfaction empirically, we employ a novel measure based on crowdsourced employer reviews. Considering the as yet under-researched and less regulated private firm setting, in which internal characteristics such as employee satisfaction should play a more important role for corporate actions, we find that our measure for job satisfaction has a positive impact on investment efficiency. High job satisfaction seems to alleviate problems related to moral hazard and adverse selection resulting from information asymmetries, which ultimately improves corporate investment efficiency. We further show that high job satisfaction reduces particularly the likelihood of underinvestment, where profitable investment projects are not carried out. Our study demonstrates the importance of cultivating a positive workplace environment with contented employees, which does benefit fundamental corporate actions.
Department/s
- Accounting and Corporate Finance
Publishing year
2022-10
Language
English
Publication/Series
European Management Journal
Document type
Journal article
Publisher
Elsevier
Topic
- Business Administration
Status
Epub
ISBN/ISSN/Other
- ISSN: 0263-2373