The DOI matches its Crossref record; 5 of the 5 references it cites were found in a registry or an index.
Labor Hiring, Investment, and Stock Return Predictability in the Cross Section
Abstract
We study the impact of labor market frictions on asset prices. In the cross section of US firms, a 10 percentage point increase in the firm’s hiring rate is associated with a 1.5 percentage point decrease in the firm’s annual risk premium. We propose an investment-based model with stochastic labor adjustment costs to explain this finding. Firms with high hiring rates are expanding firms that incur high adjustment costs. If the economy experiences a shock that lowers adjustment costs, these firms benefit the most. The corresponding increase in firm value operates as a hedge against these shocks, explaining the lower risk premium of these firms in equilibrium.
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Cites
Common risk factors in the returns on stocks and bonds
Fama, E. F., & French, K. R. (1993) · Journal of Financial Economics · doi:10.1016/0304-405x(93)90023-5 · Cited by 25,754
On Persistence in Mutual Fund Performance
Carhart, M. M. (1997) · The Journal of Finance · doi:10.1111/j.1540-6261.1997.tb03808.x · Cited by 17,283
Returns to Buying Winners and Selling Losers: Implications for Stock Market Efficiency
JEGADEESH, N., & TITMAN, S. (1993) · The Journal of Finance · doi:10.1111/j.1540-6261.1993.tb04702.x · Cited by 11,584
By Force of Habit: A Consumption‐Based Explanation of Aggregate Stock Market Behavior
Campbell, J. Y., & Cochrane, J. H. (1999) · Journal of Political Economy · doi:10.1086/250059 · Cited by 5,210
The Flow Approach to Labor Markets: New Data Sources and Micro–Macro Links
Davis, S. J., Faberman, R. J., & Haltiwanger, J. (2006) · Journal of Economic Perspectives · doi:10.1257/jep.20.3.3 · Cited by 429
Cited by
The Changing Economics of Knowledge Production
Abis, S., & Veldkamp, L. (2023) · The Review of Financial Studies · doi:10.1093/rfs/hhad059 · Cited by 167
Non-Standard Errors in Portfolio Sorts
Walter, D., Weber, R., & Weiss, P. (2022) · SSRN Electronic Journal · doi:10.2139/ssrn.4164117 · Cited by 12
Metadata
- Authors
- Belo, F., Lin, X., & Bazdresch, S.
- Venue
- Journal of Political Economy
- Publisher
- University of Chicago Press
- Published
- 2014-02
- Volume
- 122
- Issue
- 1
- Pages
- 129-177
- ISSN
- 0022-3808 (ISSN-L)
- 1537-534X
- OpenAlex
- W3122781175
- Cited by
- 379
- References
- 5
- FWCI
- 45.36
- Type
- journal article
- Language
- en
- Open access
- closed
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Data sources
Bibliographic data: Semantic Scholar, OpenAlex, Crossref.
Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.
