Surprise! High Employee Satisfaction = More Positive Earnings Surprises
ESG and SRI strategies filter companies on metrics that often measure intangibles. Alex Edmans finds that employee satisfaction does correlate with corporate outcomes, but the market is not yet adequately valuing this intangible.
Alex Edmans, PhD
Advisor, Research Affiliates Professor, London Business School
Feifei Li, PhD, FRM
Partner, Head of Investment Strategy, Research Affiliates
Conversation based on:
Does the Stock Market Fully Value Intangibles? Employee Satisfaction and Equity Prices