Financial constraints and employee satisfaction

Jing, C., Keasey, K., Lim, I. and Xu, B. ORCID: https://orcid.org/0000-0003-3512-5834 (2019) Financial constraints and employee satisfaction. Economics Letters, 183. 1873-7374. ISSN 1873-7374 doi: 10.1016/j.econlet.2019.108599

Abstract/Summary

Using over 120,000 employee reviews collected by Glassdoor between 2008 and 2015, we investigate whether firm financial constraints reduce employee satisfaction. We find that employee satisfaction is substantially lower in financially constrained firms. Decomposing employee ratings, we find that firm financial constraints are associated with employees’ concerns regarding work-life balance, senior leadership, and career progression. Our study implies that employee satisfaction could be an important channel through which financial constraints reduce firm value.

Item Type	Article
URI	https://centaur.reading.ac.uk/id/eprint/122718
Identification Number/DOI	10.1016/j.econlet.2019.108599
Refereed	Yes
Divisions	Henley Business School > Finance and Accounting
Publisher	Elsevier
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