Ariely: Disparity in appreciation between management and rank-and-file hurts stock performance
Dan Ariely · Dan Ariely – The Human Capital Factor (Capital Allocators, EP.195) · May 17, 2021 · at 12:15
Behavioral economist Dan Ariely discusses how Irrational Capital analyzes workplace sentiment data (such as Glassdoor) to generate investment signals.
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“One of the things we find is that it's not about just the overall level of, let's say, feeling appreciated. So we find that feeling appreciated is a very good signal. But it's not just the overall level of being appreciated. It's the difference between how management and rank and file employees feel about being appreciated. We call this alignment. And companies that the gap between how they treat management and how they treat employee is very large are companies that are actually less productive in the stock market.”
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