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Essays in financial credibility of employees opinions
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TitleInfo
Title
Essays in financial credibility of employees opinions
Name
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Farhadi
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Reza
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1984-
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Reza Farhadi
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author
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Nanda
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Vikram
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Vikram Nanda
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Advisory Committee
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chair
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Kedia
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Simi Kedia
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Advisory Committee
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internal member
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Brick
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Ivan
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Ivan Brick
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Advisory Committee
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internal member
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Dass
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Nishant
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Nishant Dass
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Advisory Committee
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Rutgers University
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degree grantor
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Graduate School - Newark
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Text
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theses
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2018
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2018-10
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2018
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xx
Language
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eng
Abstract
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This doctoral dissertation explores the nature of information available to firms’ non-executive
employees in two chapters. The first chapter examines whether employees, as a group, possess
valuable information about their firms that outside investors and even their managers may not
have? In the first chapter we isolate employee opinions (Glassdoor data) from those of stock
market participants by focusing on private firms that subsequently go public. Employees’ pre-IPO
views are informative: positive views on firm quality predict stronger post-IPO stock-performance.
In addition, dispersion in employee opinions correlates with post-IPO return volatility. Somewhat
surprisingly, employee satisfaction (e.g., work-life-balance) is negatively related to firm performance,
after controlling for opinions on firm quality. Negative initial-day stock returns depress employees’
views regarding firm quality: hence, leaving ‘money-on-the-table’ helps avoid a loss of employees’
morale.
In the second chapter we test whether employees continuously provide reliable non-public information
about their firms? Using textual analysis of Glassdoor data we show that employee opinions,
at least in aggregate, are continuously informative about their firms and are positively associated
with future firm performance and value. Following Quiet life hypothesis, employee-satisfaction (e.g.,
work-life-balance & compensation) is negatively related to firm performance, when we control for opinions on firm quality. We also show that employee opinions are more valuable in the presence
of greater complexity and uncertainty. In addition, dispersion in employee opinions correlates with
concurrent and future stock volatility. We also find there is a positive (negative) relation between
change in firm size and employees’ view about firm quality (employee satisfaction, controlling for
firm quality). Textual analysis also indicates that employees’ negative and uncertain tone about
their firm is negatively related to firm value and predictive of future stock volatility. Finally, we show
that firms’ performance is the main employees’ motivation to provide extended textual disclosure
about their firm.
employees in two chapters. The first chapter examines whether employees, as a group, possess
valuable information about their firms that outside investors and even their managers may not
have? In the first chapter we isolate employee opinions (Glassdoor data) from those of stock
market participants by focusing on private firms that subsequently go public. Employees’ pre-IPO
views are informative: positive views on firm quality predict stronger post-IPO stock-performance.
In addition, dispersion in employee opinions correlates with post-IPO return volatility. Somewhat
surprisingly, employee satisfaction (e.g., work-life-balance) is negatively related to firm performance,
after controlling for opinions on firm quality. Negative initial-day stock returns depress employees’
views regarding firm quality: hence, leaving ‘money-on-the-table’ helps avoid a loss of employees’
morale.
In the second chapter we test whether employees continuously provide reliable non-public information
about their firms? Using textual analysis of Glassdoor data we show that employee opinions,
at least in aggregate, are continuously informative about their firms and are positively associated
with future firm performance and value. Following Quiet life hypothesis, employee-satisfaction (e.g.,
work-life-balance & compensation) is negatively related to firm performance, when we control for opinions on firm quality. We also show that employee opinions are more valuable in the presence
of greater complexity and uncertainty. In addition, dispersion in employee opinions correlates with
concurrent and future stock volatility. We also find there is a positive (negative) relation between
change in firm size and employees’ view about firm quality (employee satisfaction, controlling for
firm quality). Textual analysis also indicates that employees’ negative and uncertain tone about
their firm is negatively related to firm value and predictive of future stock volatility. Finally, we show
that firms’ performance is the main employees’ motivation to provide extended textual disclosure
about their firm.
Subject
(authority = RUETD)
Topic
Management
Subject
(authority = ETD-LCSH)
Topic
Employees--Attitudes
Subject
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Topic
Employee morale
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Rutgers University Electronic Theses and Dissertations
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ETD_9120
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electronic resource
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1 online resource (153 pages) : illustrations
Note
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Ph.D.
Note
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Includes bibliographical references
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by Reza Farhadi
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Graduate School - Newark Electronic Theses and Dissertations
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rucore10002600001
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doi:10.7282/t3-681c-ct71
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ETD doctoral
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The author owns the copyright to this work.
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Name
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Farhadi
GivenName
Reza
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Permission or license
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2018-07-29 17:15:46
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Reza Farhadi
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Rutgers University. Graduate School - Newark
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Author Agreement License
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I hereby grant to the Rutgers University Libraries and to my school the non-exclusive right to archive, reproduce and distribute my thesis or dissertation, in whole or in part, and/or my abstract, in whole or in part, in and from an electronic format, subject to the release date subsequently stipulated in this submittal form and approved by my school. I represent and stipulate that the thesis or dissertation and its abstract are my original work, that they do not infringe or violate any rights of others, and that I make these grants as the sole owner of the rights to my thesis or dissertation and its abstract. I represent that I have obtained written permissions, when necessary, from the owner(s) of each third party copyrighted matter to be included in my thesis or dissertation and will supply copies of such upon request by my school. I acknowledge that RU ETD and my school will not distribute my thesis or dissertation or its abstract if, in their reasonable judgment, they believe all such rights have not been secured. I acknowledge that I retain ownership rights to the copyright of my work. I also retain the right to use all or part of this thesis or dissertation in future works, such as articles or books.
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2018-10-31
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2020-10-30
Detail
Access to this PDF has been restricted at the author's request. It will be publicly available after October 30th, 2020.
Copyright
Status
Copyright protected
Availability
Status
Open
Reason
Permission or license
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