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

Arbeitspapier

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 Hoberget 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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CFR Working Paper ; No. 20-12

Classification and Topics

• Classification: Wirtschaft ; Investment; Capital; Intangible Capital; Capacity ; Asset Pricing; Trading Volume; Bond Interest Rates ; Information and Market Efficiency; Event Studies; Insider Trading ; Marketing
• Subject: Intangible Capital ; Customer Satisfaction ; Innovativity ; ESG-Investing

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Theissen, Erik ; Zimmermann, Lukas
• Event: Veröffentlichung
• (who): University of Cologne, Centre for Financial Research (CFR)
• (where): Cologne
• (when): 2020

Further information

• Handle: http://hdl.handle.net/10419/228694
• Last update: 10.03.2025, 11:42 AM CET