 Job satisfaction and investment efficiency – Evidence from crowdsourced employer reviewsSusanne Arvidsson, Brigitte Eierle and Sven Hartlieb European Management Journal, 2024, vol. 42, issue 2, 266-280 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. Keywords: Job satisfaction; Investment efficiency; Moral hazard; Information asymmetry; Private firms (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:eurman:v:42:y:2024:i:2:p:266-280 Ordering information: This journal article can be ordered from DOI: 10.1016/j.emj.2022.10.007 Access Statistics for this article European Management Journal is currently edited by Michael Haenlein More articles in European Management Journal from Elsevier |
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