Abstract
<p class="MsoBlockText" style="margin: 0in 0.5in 0pt; mso-pagination: widow-orphan;"><span style="font-style: normal; mso-bidi-font-style: italic;"><span style="font-size: x-small;"><span style="font-family: Times New Roman;">We hypothesize that satisfied employees lead to higher returns for shareholders.<span style="mso-spacerun: yes;">&nbsp; </span>In particular, we investigate whether inclusion on Fortune magazine&rsquo;s list of &ldquo;100 Best Companies to Work For&rdquo; leads to increases in wealth for shareholders.<span style="mso-spacerun: yes;">&nbsp; </span>We find no announcement effect associated with the list release date.<span style="mso-spacerun: yes;">&nbsp; </span>Although we do find that a subset of firms named to the list in one year generate higher returns (than a matched sample) the following year, we conclude that, ex ante, investors would be unable to consistently profit from any information provided by inclusion on the list.<span style="mso-spacerun: yes;">&nbsp; </span>Tests of returns of companies that are dropped from the Fortune list indicate no abnormal performance.</span></span></span></p>
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