Investing in Fortune's 100 Best Companies to Work for in America

Abstract

Each year, since 1998, Fortune magazine has published a list of firms deemed the "100 Best Companies to Work for in America" based on their superior employeremployee relations. This relationship represents an intangible asset that may significantly influence future firm performance. We investigate whether investment strategies that invest in the 100 Best are able to outperform the market. The results indicate that portfolios, consisting of firms on the list, offer higher risk adjusted returns than the S&P 500 over the period 1998-2005. (G11)