Evaluating the Financial Impact of Worker Compensation Changes on Firm Value
Category: Community Engagement Poster
Author(s): Harika Shankar
Presenter(s): Harika Shankar
Mentors(s): Zachary Rogers, Samantha Conroy
Pay practices play a crucial role in shaping organizational success and significantly impact worker well-being. The Understanding the Pay-off of Good Pay Practices study examines whether pay-related announcements for non-executive workers lead to abnormal stock returns, assessing the financial consequences for compensation decisions. Our research team analyzes data from publicly traded companies (2000-2023) to assess market reactions to announcements of changes in wage policies. Additionally, this study integrates a supply chain perspective, evaluating how pay announcements affect supplier stock performance. Using a consolidated dataset, our analysis aims to identify patterns in market reactions to pay changes, offering valuable insights for industry leaders. This research enhances discussions on compensation strategies, equipping organizations with data-driven perspectives on the financial implications of wage policies.