Crowdsourced employer reviews and stock returns

Green, T. Clifton; Huang, Ruoyan; Wen, Quan; Zhou, Dexin

doi:10.1016/j.jfineco.2019.03.012

Cited by 247 publications

(93 citation statements)

References 53 publications

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“…Therefore, I counted them into more than one concept when synthesizing the results of my full-text analysis into distinct concepts [see 47]. However, I did not count determinant analyses [16,17] as separate studies, as they were not within the actual scope of the articles and thus may not be subject to the same rigor as the articles' main analyses. Table 1 provides an overview of the concepts and their frequencies resulting from the analysis of the 28 peer-reviewed articles in my review set.…”

Section: Methodsmentioning

confidence: 99%

“…Further, changes in employee satisfaction (i.e., employee satisfaction trajectories) of employees with customer contact correlated positively with customer satisfaction [48]. Moreover, quarterly changes in employee satisfaction of current (vs. former) employees and employees working in headquarter states predicted stock returns one-quarter-ahead [16]. Although Green et al used information on employee satisfaction from employer reviews, their findings touch on the second type of information that can be obtained from employer reviews to estimate firm performance [16]: insider knowledge.…”

Section: Methodsmentioning

confidence: 99%

“…Moreover, quarterly changes in employee satisfaction of current (vs. former) employees and employees working in headquarter states predicted stock returns one-quarter-ahead [16]. Although Green et al used information on employee satisfaction from employer reviews, their findings touch on the second type of information that can be obtained from employer reviews to estimate firm performance [16]: insider knowledge. For instance, Glassdoor's employer reviews include a survey of employees' opinions on their employer's six-month business outlook (positive, neutral, or negative).…”

Section: Methodsmentioning

confidence: 99%

“…Other. Finally, one study facilitated the length (i.e., number of words) difference between the pros and cons section's comments as an alternative textbased measure of employee satisfaction [16]. Green et al argued that employees that are satisfied with their employer tend to spend more words in the pro section and fewer words in the contra section of their reviews [16].…”

Section: 25mentioning

confidence: 99%

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Online Employer Reviews as a Data Source: A Systematic Literature Review

Höllig

2021

Proceedings of the Annual Hawaii International Conference on System Sciences

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Employees generate a rich source of information by publishing employer reviews online. However, researchers seeking to harness employer review data face an elusive body of research to build on. Therefore, I present a systematic, multidisciplinary literature review, presenting the information obtained from employer reviews, the research topics covered, and the data sources used. My analysis of 28 peerreviewed journal articles shows that studies extract insider knowledge, information on employee satisfaction and changes in employee satisfaction, insights into workplace culture, and linguistic style from employer reviews. Studies do so to predict firm performance, to explore employee satisfaction factors, and to uncover the linguistic style of employer reviews. Glassdoor is the primary data source used. Finally, I identify five avenues for further research.

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Section: Methodsmentioning

confidence: 99%

Section: Methodsmentioning

confidence: 99%

Section: Methodsmentioning

confidence: 99%

Section: 25mentioning

confidence: 99%

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Online Employer Reviews as a Data Source: A Systematic Literature Review

Höllig

2021

Proceedings of the Annual Hawaii International Conference on System Sciences

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“…In one study, Luo, Zhou, and Shon (2016) found correlations between the content of textual Glassdoor reviews and company performance, observing that across 257,454 reviews of 425 organizations across industries, the presence of certain themes, such as teamwork, innovation, and respect, were associated with performance as assessed via traditional financial metrics. In other studies exploring different criteria, improvements in Glassdoor numeric ratings over time were found to be associated with increases in corporate performance (Green, Huang, Wen, & Zhou, 2018;Melian-Gonzalez, Bulchand-Gidumal, & Lopez-Valcarcel, 2015) and job interview difficulty (Chamberlain & Chen-Zion, 2015). Practitioners writing in Personnel Assessment And decisions VAlidAting glAssdoor.com…”

mentioning

confidence: 94%

Crowdsourcing Job Satisfaction Data: Examining the Construct Validity of Glassdoor.com Ratings

Landers

Brusso

Auer

2019

PAD

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Researchers, practitioners, and job seekers now routinely use crowdsourced data about organizations for both decision-making and research purposes. Despite the popularity of such websites, empirical evidence regarding their validity is generally absent. In this study, we tackled this problem by combining two curated datasets: (a) the results of the 2017 Federal Employee Viewpoint Survey (FEVS), which contains facet-level job satisfaction ratings from 407,789 US federal employees, and which we aggregated to the agency level, and (b) current overall and facet ratings of job satisfaction of the federal agencies contained within FEVS from Glassdoor.com as scraped from the Glassdoor application programming interface (API) within a month of the FEVS survey’s administration. Using these data, we examined convergent validity, discriminant validity, and methods effects for the measurement of both overall and facet-level job satisfaction by analyzing a multitrait-multimethod matrix (MTMM). Most centrally, we provide evidence that overall Glassdoor ratings of satisfaction within US federal agencies correlate moderately with aggregated FEVS overall ratings (r = .516), supporting the validity of the overall Glassdoor rating as a measure of overall job satisfaction aggregated to the organizational level. In contrast, the validity of facet-level measurement was not well-supported. Overall, given varying strengths and weaknesses with both Glassdoor and survey data, we recommend the combined use of both traditional and crowdsourced data on organizational characteristics for both research and practice.

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Comparing the validity of net promoter and benchmark scoring to other commonly used employee engagement metrics

Brown

2020

Human Resource Dev Quarterly

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Organizational survey data are an important part of workforce analytics for HRD researchers and practitioners. Despite the wealth of research on the business impact of employee attitudes, such as job satisfaction or engagement, there has been relatively little research to help HRD practitioners identify the optimal methods for scoring and reporting survey results. Inspired by customer satisfaction research, this study empirically examines how the use of different metrics for scoring survey responses affects the distributions of work unit engagement scores and relationships with work outcomes. Survey data were gathered from 1,242 work units in a healthcare organization. Results indicate that the choice of scoring method can meaningfully affect the distribution and validity of scores. Metrics based on extremely positive responses (top box and net promoter) were positively skewed and yielded the strongest correlations with performance. Benchmark scores were also positively skewed but did not provide any added criterionrelated validity. In contrast, mean and percent favorable scores were negatively skewed, provided less variability in scores between groups, but equally predicted unit turnover. These results indicate that using top box or net promoter scoring may yield a more normal distribution of group scores while also providing equal to greater predictive validity for

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Crowdsourced employer reviews and stock returns

Cited by 247 publications

References 53 publications

Online Employer Reviews as a Data Source: A Systematic Literature Review

Online Employer Reviews as a Data Source: A Systematic Literature Review

Crowdsourcing Job Satisfaction Data: Examining the Construct Validity of Glassdoor.com Ratings

Comparing the validity of net promoter and benchmark scoring to other commonly used employee engagement metrics

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