Date of Award


Degree Type


Degree Name

Honors Thesis



First Advisor

Bryan Foltice


This study aims to explore the previously documented relationship between employee satisfaction and superior stock returns. Previous research suggests that firms with higher employee satisfaction also deliver superior stock returns. Furthermore, previous research has established a logical connection from employee satisfaction to superior stock performance. This study constructed an equally-weighted portfolio of the publicly traded companies on Fortune’s “100 Best Companies to Work For” list. This performance was compared to the performance of the S&P 500 on a total return basis for the calendar years 2015, 2016, 2017, 2018, and 2019. The study also collected fundamental data related to each individual companies’ firm performance and the average firm performance of companies in the S&P 500. The fundamental data collected included return on equity, profit margins, sales growth, and the price to earnings ratio. The results of this study suggest that companies with higher employee satisfaction still deliver higher stock performance and that the anomaly has not been arbitraged away by investors.

Included in

Finance Commons