The influence of employee health and safety policies on the value of the organization

Abstract

Introduction: This study investigates the impact of Health and Safety (H&S) policies on the valuation of over 2,000 U.S. organizations, where results indicate the existence of a significant positive value elevation as a result of successful H&S Employee Policies implementation, with evidence of moderate variation partly attributed to the influence of the Patient Protection and Affordable Care Act (ACA). Results: We find that the observed impact of H&S policies on organization value is not an implicit reaction to COVID-19 pandemic policy implementation, but a consistent trend over a prolonged period, underscoring the strategic importance of H&S policies in corporate valuation. Practical applications: The study presents a series of tests that demonstrate the specific benefit of H&S Policy in enhancing organization value.