Family friendly firms

does it pay to care?

Authors

  • Dianna C. Preece College of Business and Public Administration, University of Louisville, Louisville, KY 40292, USA
  • Greg Filbeck College of Business Administration, University of Toledo, Toledo, OH 43606-3390, USA

DOI:

https://doi.org/10.1016/S1057-0810(99)00027-X

Keywords:

Risk-adjusted returns, Portfolio returns, Family friendly firms

Abstract

In this paper we examine the returns to a portfolio of 29 firms that are perceived as family-oriented. The sample is based on firms awarded the best 100 companies for working mothers in Working Mother Magazine’s annual survey. There is much anecdotal evidence supporting the benefits of these programs, but little evidence relating family-oriented policies to shareholder wealth. We find, based on raw returns, that family-friendly firms do not earn statistically significant excess returns relative to a matched sample or to the S & P 500. Based on risk-adjusted returns, the family-friendly portfolio outperforms the market, but underperforms a matched sample portfolio. © 1999 Elsevier Science Inc. All rights reserved.

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Published

1999-03-30

How to Cite

Preece, D. C., & Filbeck, G. (1999). Family friendly firms: does it pay to care?. Financial Services Review, 8(1), 47–60. https://doi.org/10.1016/S1057-0810(99)00027-X

Issue

Vol. 8 No. 1 (1999): Financial Services Review

Section

New Original Submission

License

Copyright (c) 1999 JAI Press Inc.

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