My work on Corporate Social Responsibility shows that employee well-being is correlated with superior long-run stock returns. This implies that it is positive for firm value, but not taken into account by the stock market.
Empirics
- Link between employee well-being and firm value
- In the US: finance version (Edmans JFE 2011), management version (Edmans AMP 2012)
- Globally (Edmans, Li, Zhang 2019)
Book