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Employee satisfaction and asymmetric cost behavior: Evidence from Glassdoor

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  • Kim, Jonghwan (Simon)
  • Ra, Kyeongheum

Abstract

This study examines the effect of employee satisfaction on firms’ cost behavior. Exploring over a million employees’ ratings collected from Glassdoor.com between 2008 and 2020, we find that higher employee satisfaction is associated with a higher degree of asymmetry in cost behavior. Furthermore, our analysis shows that the association is more pronounced in industries that lay great store by human capital. Our results suggest that satisfied employees are a valuable asset that affects firms’ choices over cost behavior.

Suggested Citation

  • Kim, Jonghwan (Simon) & Ra, Kyeongheum, 2022. "Employee satisfaction and asymmetric cost behavior: Evidence from Glassdoor," Economics Letters, Elsevier, vol. 219(C).
    • Handle: RePEc:eee:ecolet:v:219:y:2022:i:c:s016517652200310x
    DOI: 10.1016/j.econlet.2022.110829
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    Cited by:

    1. Seul Gi Oh & Kyeongheum Ra, 2024. "Does innovation matter for asymmetric cost behaviour? Evidence from forward citations to the patents," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 64(4), pages 3685-3711, December.
    2. Kyiu, Anthony & Tawiah, Bernard & Boamah, Evans Ofosu, 2023. "Employees’ reviews and stock price informativeness," Economics Letters, Elsevier, vol. 233(C).
    3. Ra, Kyeongheum & Kim, Grace Goun, 2023. "Does litigation risk matter for managers’ asymmetric cost behavior?," Finance Research Letters, Elsevier, vol. 53(C).
    4. Jeon, Heung-Jae, 2024. "CEO narcissism and asymmetric cost behavior," The North American Journal of Economics and Finance, Elsevier, vol. 70(C).
    5. Jing, Chenxing & Keasey, Kevin & Xu, Bin, 2023. "Environmental sustainability and employee satisfaction," Economics Letters, Elsevier, vol. 233(C).
    6. Hunter Ng, 2024. "Why is it so hard to find a job now? Enter Ghost Jobs," Papers 2410.21771, arXiv.org.

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    More about this item

    Keywords

    Employee satisfaction; Asymmetric cost behavior; Human capital; Glassdoor;
    All these keywords.

    JEL classification:

    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • M20 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - General
    • M50 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - General

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