An Analysis of the Financial Performance of Companies Rated Best Places to Work Compared to the Market Index: A Comparative Study Pre and Post Covid-19

Abstract

This thesis investigates the performance of companies ranked on Glassdoor´s UK Best Places to Work list from 2017 to 2022, with a particular focus on the impact of the Covid-19 pandemic. By analysing this recent period, we aim to capture current market developments and trends. Incorporating a dummy variable for the post-Covid era, our regression analysis assesses the influence of the pandemic on stock returns and evaluates the changing landscape of employee well-being and work practices. To ensure the robustness of our findings, we compare the performance of the BPTW portfolio against a control group drawn from the S&P 500. Control variables such as company size, sector classification, and age are considered to isolate the specific impact of being recognized as a BPTW company on financial performance. Through our research, we aim to contribute to the literature by shedding light on the relationship between BPTW companies, stock returns, and the evolving dynamics of the workplace in the context of the Covid-19 pandemic. The main research question addressed is; Do stocks from the BPTW portfolio perform better than a market benchmark post-Covid? By examining the returns of different portfolios, we aim to uncover the significance of the BPTW portfolio during the pandemic. We find that overall, these results demonstrate that being listed on the Best Places to Work (BPTW) has a significant positive impact on daily returns.