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Employee satisfaction and asymmetric cost behavior: Evidence from Glassdoor

Kim, Jonghwan (Simon) and Kyeongheum Ra

Economics Letters, 2022, vol. 219, issue C

Abstract: This study examines the effect of employee satisfaction on firms’ cost behavior. Exploring over a million employees’ ratings collected from Glassdoor.com between 2008 and 2020, we find that higher employee satisfaction is associated with a higher degree of asymmetry in cost behavior. Furthermore, our analysis shows that the association is more pronounced in industries that lay great store by human capital. Our results suggest that satisfied employees are a valuable asset that affects firms’ choices over cost behavior.

Keywords: Employee satisfaction; Asymmetric cost behavior; Human capital; Glassdoor (search for similar items in EconPapers)
JEL-codes: G10 M20 M50 (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:219:y:2022:i:c:s016517652200310x

DOI: 10.1016/j.econlet.2022.110829

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