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PAPER ID:IJIM/Vol. 10 (IX)January/11-15/3
AUTHOR: Tanvi[i] Prof. Ajay Suneja [ii] Mohit Singla[iii]
TITLE : EMPLOYER BRANDING AND INVESTOR ATTRACTION: THE MODERATING ROLE OF TRUST FROM A SIGNALLING THEORY PERSPECTIVE
ABSTRACT:In capital markets characterised by information asymmetry, investors increasingly rely on non-financial signals to assess firms’ long-term value and risk profiles. Employer branding, which represents an organisation’s reputation and value proposition as an employer, has been widely studied in the context of talent attraction and retention. However, its relevance for investor decision-making remains conceptually underdeveloped. Drawing exclusively on Signalling Theory, this conceptual paper argues that employer branding functions as a strategic signal through which firms communicate unobservable organisational attributes, such as human capital quality, managerial competence, and organisational stability, to investors. Furthermore, the paper proposes that investor trust plays a crucial moderating role in determining the effectiveness of employer branding signals. Specifically, the positive relationship between employer branding and investor attraction is stronger when investor trust is high. By integrating employer branding and investment literature through a signalling-based framework, this study contributes to theory by extending the scope of employer branding beyond labour markets and identifying trust as a critical boundary condition. Implications for theory, practice, and future research are discussed.
KEYWORDS: Employer Branding, Investor Attraction, Trust, Signalling Theory, Information Asymmetry, Intangible Assets
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