How Investing in Intangibles -- Like Employee Satisfaction -- Translates into Financial Returns

Contrary to management theories developed in the Industrial Age, employee satisfaction is an important ingredient for financial success, according to a new research paper by Wharton finance professor Alex Edmans.

His findings also challenge the importance of short-term financial results and may have implications for investors interested in targeting socially responsible companies. The paper is titled, "Does the Stock Market Fully Value Intangibles? Employee Satisfaction and Equity Prices."

http://knowledge.wharton.upenn.edu/article/1873.cfm