Employee welfare and firm financial performance revisited
Purpose This study aims to revisit the link between employee welfare and firm financial performance using a large sample. Besides, the study explores mechanisms behind the link and heterogeneous effects of employee welfare on firm performance across firms and industries with different characteristi...
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| Định dạng: | Journal article |
| Ngôn ngữ: | English |
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Emerald Insight
2022
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| Những chủ đề: | |
| Truy cập trực tuyến: | https://scholar.dlu.edu.vn/handle/123456789/869 |
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oai:scholar.dlu.edu.vn:123456789-8692023-11-15T07:23:22Z Employee welfare and firm financial performance revisited Liang, Woan-lih Nguyễn, Đức Nguyên Trần, Ngọc Quỳnh Như Trương, Quang Thái Employee welfare Employee-friendly practices Employee satisfaction Financial performance Tobin's q Purpose This study aims to revisit the link between employee welfare and firm financial performance using a large sample. Besides, the study explores mechanisms behind the link and heterogeneous effects of employee welfare on firm performance across firms and industries with different characteristics. These findings help partly explain mixed results in previous works. Design/methodology/approach This study utilized KLD database data from 2001 to 2015 to capture the firm-level employee welfare, then analyze the link between employee welfare and firm financial performance. The findings are further verified using clustered standard errors ordinary least squares (OLS) regression analysis along with robustness testing, which supports the validity of our conclusions. Findings The research result confirms a positive association between employee-friendly practices and firm performance indicated by Tobin's q. Regarding the mechanisms linking the two, the study shows that higher employee welfare is positively associated with firm productivity and innovation investment, while it is negatively related to the cost of finance. Further, consistent with agency and modern management theories, the effect of employee welfare on financial performance is more pronounced for human-intensive (i.e. R&D-based) firms and firms with better corporate governance. Originality/value This study contributes to the existing literature on the association between employee welfare and firm performance in several ways. First, using the index of employee welfare from KLD can alleviate inherent limitations in previous studies. Second, the authors provide and validate the possible mechanisms linking employee welfare and firm value. Third, the authors also extend the literature by providing new insights into the employee welfare–firm performance nexus through a contingency perspective. 2022-09-02T04:04:11Z 2022-09-02T04:04:11Z 2022 Journal article Bài báo đăng trên tạp chí thuộc ISI, bao gồm book chapter https://scholar.dlu.edu.vn/handle/123456789/869 10.1108/MF-02-2022-0095 en Managerial Finance 0307-4358 Emerald Insight |
| institution |
Thư viện Trường Đại học Đà Lạt |
| collection |
Thư viện số |
| language |
English |
| topic |
Employee welfare Employee-friendly practices Employee satisfaction Financial performance Tobin's q |
| spellingShingle |
Employee welfare Employee-friendly practices Employee satisfaction Financial performance Tobin's q Liang, Woan-lih Nguyễn, Đức Nguyên Trần, Ngọc Quỳnh Như Trương, Quang Thái Employee welfare and firm financial performance revisited |
| description |
Purpose
This study aims to revisit the link between employee welfare and firm financial performance using a large sample. Besides, the study explores mechanisms behind the link and heterogeneous effects of employee welfare on firm performance across firms and industries with different characteristics. These findings help partly explain mixed results in previous works.
Design/methodology/approach
This study utilized KLD database data from 2001 to 2015 to capture the firm-level employee welfare, then analyze the link between employee welfare and firm financial performance. The findings are further verified using clustered standard errors ordinary least squares (OLS) regression analysis along with robustness testing, which supports the validity of our conclusions.
Findings
The research result confirms a positive association between employee-friendly practices and firm performance indicated by Tobin's q. Regarding the mechanisms linking the two, the study shows that higher employee welfare is positively associated with firm productivity and innovation investment, while it is negatively related to the cost of finance. Further, consistent with agency and modern management theories, the effect of employee welfare on financial performance is more pronounced for human-intensive (i.e. R&D-based) firms and firms with better corporate governance.
Originality/value
This study contributes to the existing literature on the association between employee welfare and firm performance in several ways. First, using the index of employee welfare from KLD can alleviate inherent limitations in previous studies. Second, the authors provide and validate the possible mechanisms linking employee welfare and firm value. Third, the authors also extend the literature by providing new insights into the employee welfare–firm performance nexus through a contingency perspective. |
| format |
Journal article |
| author |
Liang, Woan-lih Nguyễn, Đức Nguyên Trần, Ngọc Quỳnh Như Trương, Quang Thái |
| author_facet |
Liang, Woan-lih Nguyễn, Đức Nguyên Trần, Ngọc Quỳnh Như Trương, Quang Thái |
| author_sort |
Liang, Woan-lih |
| title |
Employee welfare and firm financial performance revisited |
| title_short |
Employee welfare and firm financial performance revisited |
| title_full |
Employee welfare and firm financial performance revisited |
| title_fullStr |
Employee welfare and firm financial performance revisited |
| title_full_unstemmed |
Employee welfare and firm financial performance revisited |
| title_sort |
employee welfare and firm financial performance revisited |
| publisher |
Emerald Insight |
| publishDate |
2022 |
| url |
https://scholar.dlu.edu.vn/handle/123456789/869 |
| _version_ |
1783866437778014208 |