The Link Between Job Satisfaction and Firm Value, with Implications for Corporate Social Responsibility

ArXiv ID: ssrn-2054066 “View on arXiv”

Authors: Unknown

Abstract

How are job satisfaction and firm value linked? I tackle this long-standing management question using a new methodology from finance. I study the effect on firm

Keywords: Job Satisfaction, Human Capital, Firm Value, Labor Economics, Corporate Governance, Equity / Human Resources

Complexity vs Empirical Score

• Math Complexity: 2.0/10
• Empirical Rigor: 3.0/10
• Quadrant: Philosophers
• Why: The paper applies a finance methodology to a management question but shows no advanced mathematics or dense derivations in the excerpt. Empirical rigor appears low as it lacks mentions of backtests, specific datasets, or statistical metrics, focusing instead on theoretical linkage.

  flowchart TD
    A["Research Goal<br>Link between Job Satisfaction & Firm Value"] --> B["Data Source<br>Great Place to Work® Employee Reviews"]
    B --> C["Methodology<br>Hedonic Pricing Model from Finance"]
    C --> D{"Analysis"}
    D --> E["Compute: Implicit Wage Premium<br>in Job Satisfaction Scores"]
    D --> F["Compute: Firm Value Metric<br>e.g., Tobin's Q"]
    E & F --> G["Correlation & Regression Analysis"]
    G --> H["Key Outcome<br>Positive correlation found between<br>Job Satisfaction Premium & Firm Value"]