Employee Satisfaction and Stock Returns during the COVID-19 Pandemic

10 Pages Posted: 28 Sep 2021

See all articles by Mary J Becker

Mary J Becker

Canisius College - Department of Economics and Finance

Alexander Cardazzi

West Virginia University - Department of Economics; Old Dominion University - Economics

Zachary McGurk

Canisius College - Richard J. Wehle School of Business

Date Written: September 23, 2021

Abstract

The COVID-19 Pandemic has had an unprecedented impact on how employees and employers operate. Employees, directly affected by workplace changes, may provide information regarding future efficiencies. As a result, crowdsourced employee satisfaction (ES) reviews mentioning the COVID-19 Pandemic may contain useful information regarding the future profitability of these firms. We utilize crowdsourced COVID-19 Pandemic specific ES obtained from Glassdoor.com to determine the impact on abnormal stock returns for public firms from March-December 2020. We find evidence that higher COVID-19 ES is related to higher abnormal stock returns. While non-COVID ES is found not to be related to abnormal stock returns.

Keywords: COVID-19 Pandemic, Glassdoor, Employee Satisfaction, Abnormal Re-turns

JEL Classification: G12, G41, G39

Suggested Citation

Becker, Mary J and Cardazzi, Alexander and McGurk, Zachary, Employee Satisfaction and Stock Returns during the COVID-19 Pandemic (September 23, 2021). Available at SSRN: https://ssrn.com/abstract=3931528 or http://dx.doi.org/10.2139/ssrn.3931528

Mary J Becker

Canisius College - Department of Economics and Finance ( email )

United States

Alexander Cardazzi (Contact Author)

West Virginia University - Department of Economics ( email )

Morgantown, WV 26506
United States

Old Dominion University - Economics ( email )

Norfolk, VA 23529
United States

Zachary McGurk

Canisius College - Richard J. Wehle School of Business ( email )

United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
69
Abstract Views
498
rank
471,957
PlumX Metrics