TY - JOUR
T1 - The Stock Performance of American Companies Investing in a Culture of Health
AU - Goetzel, Ron Z.
AU - Fabius, Raymond
AU - Roemer, Enid Chung
AU - Kent, Karen B.
AU - Berko, Jeffrey
AU - Head, Michael A.
AU - Henke, Rachel Mosher
N1 - Funding Information:
The author(s) disclosed receipt of the following financial support for the research, authorship, and/or publication of this article: Funding for this study was provided by The Robert Wood Johnson Foundation, Grant #: 74318.
Publisher Copyright:
© The Author(s) 2019.
PY - 2019/3/1
Y1 - 2019/3/1
N2 - Purpose: We investigated the relationship between companies’ efforts to build internal (COH-INT) and external cultures of health (COH-EXT) and their stock performance. Design: We administered 2 surveys, which measure companies’ programs, policies, and supports for improving the health of their employees and communities. We then compared the companies’ stock performance to the Standard and Poor’s (S&P) 500 Index from January 2013 through August 2017. Setting: United States. Participants: Representatives from 17 publicly traded companies who completed the COH-INT survey, of whom 14 also completed the COH-EXT. Measures: Culture of health scores were dichotomized into high versus low for both surveys. Stock price data for all companies were gathered from public sources. Analysis: We constructed 5 stock portfolios: all 17 companies, high COH-INT, low COH-INT, high COH-EXT, and low COH-EXT companies. We examined total returns for each portfolio compared to the S&P 500. Results: High COH-INT companies’ stock price appreciated by 115% compared to the S&P benchmark (+69%), while low COH-INT companies appreciated only 43%. In contrast, high COH-EXT companies underperformed (+44%) when compared to the S&P 500 (+69%) and low COH-EXT companies (+89%). Conclusion: This study supports the view that employers’ efforts to build an internal culture of health is a sound business strategy. More research is needed, however, to establish whether a link exists between supporting healthy community initiatives and company stock performance.
AB - Purpose: We investigated the relationship between companies’ efforts to build internal (COH-INT) and external cultures of health (COH-EXT) and their stock performance. Design: We administered 2 surveys, which measure companies’ programs, policies, and supports for improving the health of their employees and communities. We then compared the companies’ stock performance to the Standard and Poor’s (S&P) 500 Index from January 2013 through August 2017. Setting: United States. Participants: Representatives from 17 publicly traded companies who completed the COH-INT survey, of whom 14 also completed the COH-EXT. Measures: Culture of health scores were dichotomized into high versus low for both surveys. Stock price data for all companies were gathered from public sources. Analysis: We constructed 5 stock portfolios: all 17 companies, high COH-INT, low COH-INT, high COH-EXT, and low COH-EXT companies. We examined total returns for each portfolio compared to the S&P 500. Results: High COH-INT companies’ stock price appreciated by 115% compared to the S&P benchmark (+69%), while low COH-INT companies appreciated only 43%. In contrast, high COH-EXT companies underperformed (+44%) when compared to the S&P 500 (+69%) and low COH-EXT companies (+89%). Conclusion: This study supports the view that employers’ efforts to build an internal culture of health is a sound business strategy. More research is needed, however, to establish whether a link exists between supporting healthy community initiatives and company stock performance.
KW - business case
KW - community health
KW - corporate social responsibility
KW - culture of health
KW - financial impact
KW - stock price performance
KW - workplace health promotion
KW - workplace wellness
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U2 - 10.1177/0890117118824818
DO - 10.1177/0890117118824818
M3 - Article
C2 - 30700099
AN - SCOPUS:85061098330
SN - 0890-1171
VL - 33
SP - 439
EP - 447
JO - American Journal of Health Promotion
JF - American Journal of Health Promotion
IS - 3
ER -