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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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    References listed on IDEAS

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    Cited by:

    1. Kyiu, Anthony & Tawiah, Bernard & Boamah, Evans Ofosu, 2023. "Employees’ reviews and stock price informativeness," Economics Letters, Elsevier, vol. 233(C).
    2. Ra, Kyeongheum & Kim, Grace Goun, 2023. "Does litigation risk matter for managers’ asymmetric cost behavior?," Finance Research Letters, Elsevier, vol. 53(C).
    3. Jeon, Heung-Jae, 2024. "CEO narcissism and asymmetric cost behavior," The North American Journal of Economics and Finance, Elsevier, vol. 70(C).
    4. Jing, Chenxing & Keasey, Kevin & Xu, Bin, 2023. "Environmental sustainability and employee satisfaction," Economics Letters, Elsevier, vol. 233(C).

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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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