Finance Seminar（2017-25）

Topic: Wisdom of the Employee Crowd: Employer Reviews and Stock Returns

Speaker: Dexin Zhou, The City University of New York

Time: Friday, 29 December, 11:30-13:00

Place: Room 217, Guanghua Building 2

Abstract:

We find that firms experiencing improvements in crowd-sourced employer ratings significantly outperform firms with declines. The return effect is concentrated among reviews from current employees, and it is stronger among early firm reviews and when the employee works in the headquarters state. Decomposing employer ratings, we find the return effect is related to changing employee assessments of career opportunities and views of senior management and unrelated to work-life balance. Changing employer reviews predict contemporaneous growth in sales and profitability and help forecast one-quarter ahead earnings announcement surprises. The evidence is consistent with employee reviews revealing fundamental information about the firm.

Introduction:

Prof. Dexin Zhou received his bachelor's degree from Bard (09') and PhD in Finance from Emory University’s Goizueta School of Business. His research interests are mainly in behavioral finance, empirical asset pricing and institutional investors. His research work has been featured in The Economist, Financial Times and Wall Street Journal.

//zicklin.baruch.cuny.edu/faculty-profile/dexin-zhou/

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