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"Fortune's" Best 100 Companies to Work for in America: Do They Work for Shareholders?


  • Greg Filbeck
  • Dianna Preece


In this paper we examine the market reaction to the announcement by "Fortune" of the 'Best 100 Companies to Work for in America.' Employees rate firms based on several criteria including trust in management, pride in work/company and camaraderie. To examine long-term performance, we calculate raw and risk-adjusted returns and then compare them to the returns of a matched sample of firms. In addition, we calculate the return on a buy and hold investment in the sample firm less the return on a buy-and-hold investment in a matched sample firm (BHARs). We find a statistically significant positive response to the announcement of the '100 best companies to work for' by "Fortune". Also, based on all measures of risk-adjusted return, we find these firms generally outperform the matched sample of companies. The BHAR results, although not exhibiting the level of statistical significance, are consistent with the raw and risk-adjusted return results. Copyright Blackwell Publishers Ltd, 2003.

Suggested Citation

  • Greg Filbeck & Dianna Preece, 2003. ""Fortune's" Best 100 Companies to Work for in America: Do They Work for Shareholders?," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 30(5-6), pages 771-797.
  • Handle: RePEc:bla:jbfnac:v:30:y:2003-06:i:5-6:p:771-797

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    Cited by:

    1. John, Kose & Knyazeva, Anzhela & Knyazeva, Diana, 2015. "Employee rights and acquisitions," Journal of Financial Economics, Elsevier, vol. 118(1), pages 49-69.
    2. Yan-leung Cheung & J. Thomas Connelly & Piman Limpaphayom & Lynda Zhou, 2005. "Do Investors Really Value Corporate Governance? Evidence from the Hong Kong Market," Working Papers 222005, Hong Kong Institute for Monetary Research.
    3. repec:eee:ecolet:v:162:y:2018:i:c:p:53-55 is not listed on IDEAS
    4. Brammer, Stephen & Brooks, Chris & Pavelin, Stephen, 2009. "The stock performance of America's 100 Best Corporate Citizens," The Quarterly Review of Economics and Finance, Elsevier, vol. 49(3), pages 1065-1080, August.
    5. Sabrina Wieland & Benjamin Scott Flavel, 2015. "The relationship between employee orientation, financial performance and leverage," Social Responsibility Journal, Emerald Group Publishing, vol. 11(4), pages 716-733, October.
    6. Pamela Queen, 2015. "Enlightened Shareholder Maximization: Is this Strategy Achievable?," Journal of Business Ethics, Springer, vol. 127(3), pages 683-694, March.
    7. Cunha, Miguel Pina e & Cunha, Rita Campos e & Rego, Arménio, 2005. "What is an "exemplary workplace"? Evidence from Cuba," FEUNL Working Paper Series wp475, Universidade Nova de Lisboa, Faculdade de Economia.
    8. repec:bla:irvfin:v:16:y:2016:i:4:p:565-593 is not listed on IDEAS
    9. Stephen Brammer & Chris Brooks & Stephen Pavelin, 2006. "Corporate Reputation and Stock Returns; are good firm good for investors?," ICMA Centre Discussion Papers in Finance icma-dp2006-05, Henley Business School, Reading University.
    10. Greg Filbeck & Raymond F. Gorman & Xin Zhao, 2010. "Identifying the best companies for leaders: does it lead to higher returns?," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 31(1), pages 19-31.
    11. Edmans, Alex, 2011. "Does the stock market fully value intangibles? Employee satisfaction and equity prices," Journal of Financial Economics, Elsevier, vol. 101(3), pages 621-640, September.
    12. Rego, Arménio & Cunha, Miguel Pina e, 2008. "Authentizotic climates and employee happiness: Pathways to individual performance?," Journal of Business Research, Elsevier, vol. 61(7), pages 739-752, July.
    13. Greg Filbeck & Raymond Gorman & Xin Zhao, 2013. "Are the best of the best better than the rest? The effect of multiple rankings on company value," Review of Quantitative Finance and Accounting, Springer, vol. 41(4), pages 695-722, November.

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