Employees’ reviews and stock price informativeness

Kyiu, Anthony; Tawiah, Bernard; Boamah, Ofosu

Abstract

We investigate the relationship between employee reviews and stock price informativeness. Using a sample of US firms, we find that firms with higher employee satisfaction are associated with greater stock price informativeness in terms of idiosyncratic volatility. We find this result to be more pronounced for firms that have a greater reliance on human capital assets. Overall, our study suggests that employee reviews have implications for financial markets.

• Journal Article Type: Article
• Acceptance Date: Oct 10, 2023
• Online Publication Date: Oct 14, 2023
• Publication Date: Dec 31, 2023
• Deposit Date: Oct 24, 2023
• Publicly Available Date: Oct 24, 2023
• Journal: Economics Letters
• Print ISSN: 0165-1765
• Publisher: Elsevier
• Peer Reviewed: Peer Reviewed
• Volume: 233
• Article Number: 111406
• DOI: https://doi.org/10.1016/j.econlet.2023.111406
• Keywords: Employee Reviews, Stock Market, ESG
• Public URL: https://uwe-repository.worktribe.com/output/11391333