Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/228694
Authors: 
Theissen, Erik
Zimmermann, Lukas
Year of Publication: 
2020
Series/Report no.: 
CFR Working Paper No. 20-12
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 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.
Subjects: 
Intangible Capital
Customer Satisfaction
Innovativity
ESG-Investing
JEL: 
E22
G12
G14
M31
Document Type: 
Working Paper

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