Value Effect of Health and Productivity Management: An Event Study of the HPM Award in Japan.

Wada, Hiroo; Yasuda, Yukihiro · J Occup Environ Med · 2022

other · Level V

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Abstract

The value effect of winning the health and productivity management (HPM) award on their stock prices is to be evaluated. An event study and an evaluation of portfolio over the first-time HPM awardees were conducted. The abnormal return (AR) of all the first-time HPM awardees was significantly positive (0.25%, P = 0.03), as well as cumulated AR ( P < 0.01 on day 0 and 3, P < 0.05 on day 1 and 2), with a booster effect on the market value by 1.7 × 10 9 JPY. The stock value appreciation of the portfolio of them was greater than that of the market portfolio (34.3% vs 21.8%). The market participants support the view that HPM improves firms' performance. This positive and instantaneous value effect will encourage business managers to promote employee health.

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