#  Harvard Business School International Seminar  

 



####  calendar\_today Date and Time 

 **February 2, 2017** 

 12:00PM - 01:00PM EST 

####  pin\_drop Location 

 **Baker Library, 25 Harvard Way, Room 103**  



 

 



 

## “The Power of Silent Voices: Employee Satisfaction and Acquirer Stock Performance” 

### Speaker:

**Sea-Jin Chang**, *Lim Kim San Chair Professor, National University of Singapore.*

### Contact:

**Katie Moore**  
<kmoore@hbs.edu>

### Chair:

**Raj Choudhury**, *Assistant Professor of Business Administration, Technology and Operations Management Unit, Harvard Business School.*

### Abstract: 

Employees are a firm’s most valuable asset. To test whether this statement is more than just rhetoric, we assemble a novel social media dataset that captures the level of employee satisfaction in S&amp;P 500 firms and explore its relationship with stock returns in the aftermath of mergers and acquisitions. Our results show that employee satisfaction has a strong long-term positive effect on acquirer stock performance, even though its short-term effect on cumulative abnormal returns is largely insignificant. This is in contrast with previous studies wherein the external evaluations of corporate social responsibility have had significant short-term but weaker long-term effects on equity prices. Our results suggest the stock market is unable to fully incorporate the value of employee satisfaction.



 

 



 

 See also:- [ 2016–2017 ](/academic-year/2016%E2%80%932017)
- [ Harvard Business School International Seminar ](/event-categories/harvard-business-school-international-seminar)
 
 

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