Job satisfaction, management sentiment, and financial performance: Text analysis with job reviews from indeed.com
Employee job reviews contain information on many firm characteristics that are unobservable to those outside the company. Job review sites such as Glassdoor and Indeed are used by job hunters and current employees to inform each other of prevailing workplace culture. This paper collects over 1.2 mil...
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| Format: | Article |
| Language: | English |
| Published: |
Elsevier
2023-04-01
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| Series: | International Journal of Information Management Data Insights |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S2667096823000022 |
| _version_ | 1797847685980487680 |
|---|---|
| author | Sijie Feng |
| author_facet | Sijie Feng |
| author_sort | Sijie Feng |
| collection | DOAJ |
| description | Employee job reviews contain information on many firm characteristics that are unobservable to those outside the company. Job review sites such as Glassdoor and Indeed are used by job hunters and current employees to inform each other of prevailing workplace culture. This paper collects over 1.2 million job reviews from Indeed.com. Machine learning and natural language processing methods are used to obtain qualitative data about firms through employees’ sentiment regarding company management. This paper seeks to quantify how employees’ sentiment affects firms’ financial outcomes. By matching review data with firm level financial data, the analyses find that a 1% increase in ratings increases market value by approximately 0.68-0.73%, revenue by 0.62-1.01%. However, increases in management sentiment may have a non-monotonic effect on financial performance, demonstrating that trade-offs are inherent in balancing financial results and employees’ satisfaction regarding their roles. |
| first_indexed | 2024-04-09T18:15:27Z |
| format | Article |
| id | doaj.art-346b9dabefe04cf18bf5cbb82e9b87c9 |
| institution | Directory Open Access Journal |
| issn | 2667-0968 |
| language | English |
| last_indexed | 2024-04-09T18:15:27Z |
| publishDate | 2023-04-01 |
| publisher | Elsevier |
| record_format | Article |
| series | International Journal of Information Management Data Insights |
| spelling | doaj.art-346b9dabefe04cf18bf5cbb82e9b87c92023-04-13T04:27:22ZengElsevierInternational Journal of Information Management Data Insights2667-09682023-04-0131100155Job satisfaction, management sentiment, and financial performance: Text analysis with job reviews from indeed.comSijie Feng0New York University, 44 West 4th St, New York, NY 10012, USAEmployee job reviews contain information on many firm characteristics that are unobservable to those outside the company. Job review sites such as Glassdoor and Indeed are used by job hunters and current employees to inform each other of prevailing workplace culture. This paper collects over 1.2 million job reviews from Indeed.com. Machine learning and natural language processing methods are used to obtain qualitative data about firms through employees’ sentiment regarding company management. This paper seeks to quantify how employees’ sentiment affects firms’ financial outcomes. By matching review data with firm level financial data, the analyses find that a 1% increase in ratings increases market value by approximately 0.68-0.73%, revenue by 0.62-1.01%. However, increases in management sentiment may have a non-monotonic effect on financial performance, demonstrating that trade-offs are inherent in balancing financial results and employees’ satisfaction regarding their roles.http://www.sciencedirect.com/science/article/pii/S2667096823000022Applied machine learningData scienceManagementTechnologyEconometricsData analysis |
| spellingShingle | Sijie Feng Job satisfaction, management sentiment, and financial performance: Text analysis with job reviews from indeed.com International Journal of Information Management Data Insights Applied machine learning Data science Management Technology Econometrics Data analysis |
| title | Job satisfaction, management sentiment, and financial performance: Text analysis with job reviews from indeed.com |
| title_full | Job satisfaction, management sentiment, and financial performance: Text analysis with job reviews from indeed.com |
| title_fullStr | Job satisfaction, management sentiment, and financial performance: Text analysis with job reviews from indeed.com |
| title_full_unstemmed | Job satisfaction, management sentiment, and financial performance: Text analysis with job reviews from indeed.com |
| title_short | Job satisfaction, management sentiment, and financial performance: Text analysis with job reviews from indeed.com |
| title_sort | job satisfaction management sentiment and financial performance text analysis with job reviews from indeed com |
| topic | Applied machine learning Data science Management Technology Econometrics Data analysis |
| url | http://www.sciencedirect.com/science/article/pii/S2667096823000022 |
| work_keys_str_mv | AT sijiefeng jobsatisfactionmanagementsentimentandfinancialperformancetextanalysiswithjobreviewsfromindeedcom |