LAUSR

The present study provides empirical evidence that business managers can create value for firms by promoting the health of their employees. The results imply that promoting “health and productivity management” can effectively help to pursue business performance, simultaneously together with Corporate Social Responsibility (CSR) and Sustainable Development Goals (SDGs). Objective The value effect of winning the health and productivity management (HPM) award on their stock prices is to be evaluated. Methods An event study and an evaluation of portfolio over the first-time HPM awardees were conducted. Results 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 × 109 JPY. The stock value appreciation of the portfolio of them was greater than that of the market portfolio (34.3% vs 21.8%). Conclusions 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.