What question did this study set out to answer?

The paper aims to explore how organizational friction influences long-term firm risk and performance, particularly in human-capital-intensive industries.

May 8, 2026Open Access

Organizational Friction Momentum and the "S" Pillar of ESG: Evidence from Human-Capital-Intensive Industries

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The paper aims to explore how organizational friction influences long-term firm risk and performance, particularly in human-capital-intensive industries.
Introduced a framework linking employee welfare and organizational friction to firm performance.
Constructed two proxies: a sentiment-based and an accounting-based proxy for organizational friction momentum.
Analyzed data from Glassdoor employee reviews and US equities from 2021 to 2025.
Found that a decline in sentiment proxy reliably predicts higher tail risk over 12 months.
Identified significant predictive power of residual OFM in technology, healthcare, and business services sectors.
Achieved an equal-weighted long-short return of 0.985% per month in HCI industries.

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Implication

Exploratory framework assesses organizational friction's impact on firm performance, focusing on human capital sectors.

Cite This Study

guoyong chen (2026) studied this question.

synapsesocial.com/papers/69fd7ee0bfa21ec5bbf0729f https://doi.org/10.5281/zenodo.20057396

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Organizational Friction Momentum and the "S" Pillar of ESG: Evidence from Human-Capital-Intensive Industries

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Implication

Cite This Study

Organizational Friction Momentum and the "S" Pillar of ESG: Evidence from Human-Capital-Intensive Industries

Key Points

Discussion

Implication

Cite This Study

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