Hamid Boustanifar and Young Dae Kang of France’s EDHEC Business School have replicated an important study of the returns from investing in the best companies to work for, as revealed by their employees. Their results have been reported in the recent Financial Analysts Journal.
An index of US companies that best satisfy their employees would have provided market-beating returns over an extended period to 2020, on average a meaningful extra 2%-3% per annum over the long run. Incidentally, a similar methodology applied to selected groups of companies with good environmental, social & governance qualifications revealed slightly inferior returns...
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