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Exploring the link between work‑life balance and corporate financial performance across legal traditions

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In this study, we examine the impact of work-life balance (WLB) on corporate financial performance (CFP) in a cross- national context, using employee reviews from Glassdoor.com for companies in various industries across 19 European countries between 2009 and 2021. We applied regression analysis to test the link between WLB and CFP and found a positive impact on CFP, as indicated by return on assets (ROA) and return on equity (ROE). Furthermore, we found that civil versus common law traditions do not have a noticeable effect on the efficacy of WLB in improving CFP. This chal- lenges the expectation that civil-law countries would have a more pronounced effect than those with a common-law tradition. Our study contributes to employee-wellbeing literature by examining the impact of work-life balance on firm financial performance in a cross-national context. Additionally, we add to the law and finance literature by examining the institutional factor and how it affects the relationship between employee welfare and firm performance. The current debate in the law and finance literature mainly focuses on the protection of investors as governed by legal rules. Our study sheds light on how similar mechanisms relate to the welfare of other stakeholders

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Articles publicats en revistes (Empresa)

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Exploring the link between work‑life balance and corporate financial performance across legal traditions