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Investor Horizons and Employee Satisfaction: A test of the long-term perspective vision of CSR

Author

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  • Alexandre Garel

    (Audencia Business School)

  • Arthur Petit-Romec

    (SKEMA Business School- Université Côte d'Azur)

Abstract

This paper analyses the relationship between investor horizons and employee satisfaction. Because employee satisfaction generates substantial value over the long run, it is well suited to provide an empirical test of Bénabou and Tirole (2010)'s long-term perspective vision of CSR. We find that long-term investor ownership is positively associated with employee satisfaction while this is not the case for the other dimensions of CSR. Additional tests show that this association reflects a direct influence of long-term investors (rather than self-selection). Our results suggest that, when CSR is about maximizing intertemporal profits, long-term investors play a critical role in promoting it.

Suggested Citation

  • Alexandre Garel & Arthur Petit-Romec, 2020. "Investor Horizons and Employee Satisfaction: A test of the long-term perspective vision of CSR," Economics Bulletin, AccessEcon, vol. 40(1), pages 765-781.
    • Handle: RePEc:ebl:ecbull:eb-20-00071
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    References listed on IDEAS

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    More about this item

    Keywords

    Corporate Social Responsibility; Employee Satisfaction; Human Capital; Investor Horizons; Institutional Investors;
    All these keywords.

    JEL classification:

    • G3 - Financial Economics - - Corporate Finance and Governance
    • G2 - Financial Economics - - Financial Institutions and Services

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