THE NEXUS BETWEEN EMPLOYEE HAPPINESS AND COMPANY PERFORMANCE
This article examines the relationship between worker satisfaction and business profitability, particularly emphasizing the pandemic era. It offers a fresh viewpoint on how a person's happiness may be critical in developing a business. The empirical study focuses on approximately 12,343...
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| Main Author: | |
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| Format: | Article |
| Language: | English |
| Published: |
“Victor Slăvescu” Centre for Financial and Monetary Research
2024-12-01
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| Series: | Financial Studies |
| Online Access: | http://fs.icfm.ro/Paper03.FS.2024.pdf |
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| Summary: | This article examines the relationship between worker
satisfaction and business profitability, particularly emphasizing the
pandemic era. It offers a fresh viewpoint on how a person's happiness
may be critical in developing a business. The empirical study focuses
on approximately 12,343 companies operating in various sectors, for
which financial data for the reference period 2013-2022 were collected
from the ORBIS platform. Quantile regression and panel smooth
transition regression models were used as estimation methodologies.
The findings have shown that employee satisfaction generally has a
detrimental impact on a company's profitability, with a significantly
more evident effect on companies with very low ROA and ROE
indicators. Furthermore, it has been demonstrated that, although the
influence is less pronounced in absolute terms, the relationship
between happiness and profitability within successful enterprises
becomes increasingly positive. Additionally, the COVID-19 pandemic
has brought about notable changes in the dynamics between these two
variables, revealing that a rise in employee happiness during the
pandemic contributed to increased profitability in companies with lower
productivity. Conversely, it resulted in a decline in profitability for firms
exhibiting exceptionally high ROA or ROE indicators. |
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| ISSN: | 2066-6071 |