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Employee Sentiment and Consumer Sentiment indexes. Panel a displays the Employee Sentiment aggregating online opinions from employees in the United States who voluntarily and anonymously disclose their expectations for the business outlook of their employer for the next six months. Panels b and c show the University of Michigan and the Conference Board Consumer indicators. The sample spans the period from June 2012 to July 2018 .
Source publication
We assess the ability of online employee-generated content in predicting consumption expenditures. In so doing, we aggregate millions of employee expectations for the next six-month business outlook of their employer and build an employee sentiment index. We test whether forward-looking employee sentiment can contribute to baseline models when fore...
Context in source publication
Context 1
... in addition to market and firm-level indicators, industry-specific indicators can be constructed to reflect the employee sentiment in specific industries which, in turn, could be useful for detecting significant sector-specific changes in demand. Figure 1 shows the ES and the consumer sentiment indicators graphically. Overall, the study period is marked with an upward trend in the level of employee and consumer sentiment. ...
Citations
Using employee online reviews as a proxy of employee treatment and well-being for tourism and hospitality firms, we extrapolate the association of employee satisfaction with financial leverage and bankruptcy risk. Consistent with theoretical expectations and empirical evidence, we find that firms ranked high on employee treatment have lower levels of market and book leverage. This relationship is also pronounced for bankruptcy risk where firms with higher employee satisfaction enjoy higher creditworthiness. The results are robust controlling for well-known effects, alternative specifications, and endogeneity concerns.
We investigate if general economic conditions influence aviation safety across the whole sector. Specifically, the study explores the relationship among aviation accidents and incidents for Part 121 US commercial airlines with fuel prices, stock market volatility, industrial production growth, and treasury bill rates. Our findings suggest that most of the variables under consideration exhibit a strong association with airline safety. Importantly, we examine two plausible channels that may explain these results; managerial decisions and the effect on “human factor”. Analysis of airline financial data, health, and safety violations, along with airline employee satisfaction levels, suggests that it is more likely that the economy influences aviation safety through managerial decisions. This study confirms theoretical predictions about reductions on firms’ quality standards in periods of financial stress and liquidity constraints. The findings of the study have important implications for regulators and other stakeholders.
