Organization capital, labor market flexibility, and stock returns around the world
Organization capital, labor market flexibility, and stock returns around the world
Using data from 20 OECD countries, we find that firms with greater organization capital have significantly higher stock returns and that this represents an international phenomenon. We also find new evidence that the positive association between organization capital and stock returns increases with labor market flexibility. This finding is consistent with greater labor mobility and competition in flexible labor markets rendering organization capital investment riskier from the shareholders’ perspective.
organization capital, labor market flexibility, intangible assets, stock returns, implied cost of capital
150-168
Leung, Woon Sau
73a8bf54-6035-4f11-a9ec-74272abbacb5
Mazouz, Khelifa
efb38409-bd94-45ab-ba50-aa5b8640f614
Chen, Jie
7181526d-ec25-480e-a35e-37bf4616e131
Wood, Geoffrey
7f0496f0-6184-41a4-b496-7179860a6824
16 March 2018
Leung, Woon Sau
73a8bf54-6035-4f11-a9ec-74272abbacb5
Mazouz, Khelifa
efb38409-bd94-45ab-ba50-aa5b8640f614
Chen, Jie
7181526d-ec25-480e-a35e-37bf4616e131
Wood, Geoffrey
7f0496f0-6184-41a4-b496-7179860a6824
Leung, Woon Sau, Mazouz, Khelifa, Chen, Jie and Wood, Geoffrey
(2018)
Organization capital, labor market flexibility, and stock returns around the world.
Journal of Banking and Finance, 89, .
(doi:10.1016/j.jbankfin.2018.02.008).
Abstract
Using data from 20 OECD countries, we find that firms with greater organization capital have significantly higher stock returns and that this represents an international phenomenon. We also find new evidence that the positive association between organization capital and stock returns increases with labor market flexibility. This finding is consistent with greater labor mobility and competition in flexible labor markets rendering organization capital investment riskier from the shareholders’ perspective.
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Accepted/In Press date: 5 February 2018
e-pub ahead of print date: 15 February 2018
Published date: 16 March 2018
Keywords:
organization capital, labor market flexibility, intangible assets, stock returns, implied cost of capital
Identifiers
Local EPrints ID: 484609
URI: http://eprints.soton.ac.uk/id/eprint/484609
ISSN: 0378-4266
PURE UUID: 63ce2be0-7675-448d-9bbe-dfcdedef3b09
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Date deposited: 17 Nov 2023 18:01
Last modified: 18 Mar 2024 04:17
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Contributors
Author:
Woon Sau Leung
Author:
Khelifa Mazouz
Author:
Jie Chen
Author:
Geoffrey Wood
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