Job Satisfaction and Investment Efficiency – Evidence from Crowdsourced Employer Reviews
(2022) In European Management Journal- Abstract
- 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... (More)
- 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. (Less)
Please use this url to cite or link to this publication:
https://lup.lub.lu.se/record/b0232a37-b3e4-4c4e-8031-ad1db0bd1afa
- author
- Arvidsson, Susanne LU ; Eierle, Brigitte LU and Hartlieb, Sven
- organization
- publishing date
- 2022-10
- type
- Contribution to journal
- publication status
- epub
- subject
- in
- European Management Journal
- publisher
- Elsevier
- external identifiers
-
- scopus:85142801148
- ISSN
- 0263-2373
- DOI
- 10.1016/j.emj.2022.10.007
- language
- English
- LU publication?
- yes
- id
- b0232a37-b3e4-4c4e-8031-ad1db0bd1afa
- date added to LUP
- 2022-10-26 10:06:33
- date last changed
- 2023-01-31 14:11:23
@article{b0232a37-b3e4-4c4e-8031-ad1db0bd1afa,
abstract = {{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.}},
author = {{Arvidsson, Susanne and Eierle, Brigitte and Hartlieb, Sven}},
issn = {{0263-2373}},
language = {{eng}},
publisher = {{Elsevier}},
series = {{European Management Journal}},
title = {{Job Satisfaction and Investment Efficiency – Evidence from Crowdsourced Employer Reviews}},
url = {{http://dx.doi.org/10.1016/j.emj.2022.10.007}},
doi = {{10.1016/j.emj.2022.10.007}},
year = {{2022}},
}