- Employee Satisfaction •
- Labor Market Flexibility •
- socially responsible investing •
- Corporate Social Responsibility
We study the relationship between employee satisfaction and abnormal stock returns around the world, using lists of the ?Best Companies to Work For? in 14 countries. We show that employee satisfaction is associated with positive abnormal returns in countries with high labor market flexibility, such as the U.S. and U.K., but not in countries with low labor market flexibility, such as Germany.