Satisfied Employees, Satisfied Investors: How Employee Well-being Impacts Mutual Fund Returns

Posted: 28 Jan 2023 Last revised: 12 Apr 2024

See all articles by Elias L. Ohneberg

Elias L. Ohneberg

University of Cambridge - Judge Business School

Pedro Saffi

University of Cambridge - Judge Business School

Date Written: February 21, 2023

Abstract

This paper uses proprietary data on self-reported employee reviews from Glassdoor.com to study the relationship between employee satisfaction and mutual fund performance. An analysis using variation from mergers between asset management companies to identify exogenous variation in job satisfaction and the staggered adoption of Anti-SLAPP (Strategic Lawsuits Against Public Participation) laws in the U.S. shows that satisfaction positively impacts fund performance. Our results suggest that only the satisfaction of performance-critical employees matters. A one-point increase on the 5-point scale of employee satisfaction leads to a 24bps increase in abnormal fund performance.

Keywords: Mutual fund, employee satisfaction, performance, risk-taking, mergers

JEL Classification: G10, G12, G14

Suggested Citation

Ohneberg, Elias L. and Saffi, Pedro A. C., Satisfied Employees, Satisfied Investors: How Employee Well-being Impacts Mutual Fund Returns (February 21, 2023). Available at SSRN: https://ssrn.com/abstract=4338441 or http://dx.doi.org/10.2139/ssrn.4338441

Elias L. Ohneberg

University of Cambridge - Judge Business School ( email )

Trumpington St.
Cambridge, CB21AG
United Kingdom

Pedro A. C. Saffi (Contact Author)

University of Cambridge - Judge Business School ( email )

Trumpington Street
Cambridge, CB2 1AG
United Kingdom

HOME PAGE: http://www.pedrosaffi.com

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