Do contented customers make shareholders wealthy? - Implications of intangibles for security pricing

URL:	https://papers.ssrn.com/sol3/papers.cfm?abstract_i...
Dokumenttyp:	Arbeitspapier
Erscheinungsjahr:	2021
Titel einer Zeitschrift oder einer Reihe:	SSRN Working Paper Series
Ort der Veröffentlichung:	Rochester, NY
Verlag:	SSRN
Sprache der Veröffentlichung:	Englisch
Einrichtung:	Fakultät für Betriebswirtschaftslehre > ABWL u. Finanzierung (Theissen 2009-)
Fachgebiet:	330 Wirtschaft
Fachklassifikation:	JEL: E22 , G12 , G14 , M31,
Freie Schlagwörter (Englisch):	intangible capital , customer satisfaction , innovativity , ESG-investing
Abstract:	We explore the relation between customer satisfaction and security returns. Firms with high customer satisfaction levels earn significant abnormal returns. This result is robust to variations of model specification and test methodology. Additional tests do not reveal evidence of systematic mispricing. Our results rather suggest that there are, consistent with the model of Eisfeldt and Papanikolaou (2013), sources of risk not covered by standard risk factors. We identify firm characteristics, such as the Hoberg et al. (2014) product market fluidity measure, and macro variables, such as patenting activity and aggregate R&D spending, that are related to these sources of risk.