CEO Employee Approval and Firm Value: Evidence from Employees' Choice Awards

36 Pages Posted: 27 Mar 2020 Last revised: 6 Jul 2021

See all articles by Spencer Barnes

Spencer Barnes

Department of Finance, College of Business, Florida State University

Date Written: March 3, 2020

Abstract

This study examines the impact of a chief executive officer (CEO) winning an employee opinion award on firm value. Leveraging close employee vote shares in a regression discontinuity specification from Glassdoor's "Top CEOs Employees' Choice" award list suggest a causal link of the relationship. Narrowly winning an employees' choice CEO award results in an increase in firm value in following years. An increase in firm efficiency is the likely economic channel that influences an increase in firm value. The findings imply that CEO and employee relationships are an important intangible good for corporate governance.

Keywords: CEO employee opinion, corporate culture, regression discontinuity

JEL Classification: G30, G34, M14

Suggested Citation

Barnes, Spencer, CEO Employee Approval and Firm Value: Evidence from Employees' Choice Awards (March 3, 2020). Available at SSRN: https://ssrn.com/abstract=3545481 or http://dx.doi.org/10.2139/ssrn.3545481

Spencer Barnes (Contact Author)

Department of Finance, College of Business, Florida State University ( email )

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