Organization capital, labor market flexibility, and stock returns around the world

Leung, Woon Sau ORCID: https://orcid.org/0000-0002-0389-2126, Mazouz, Khelifa ORCID: https://orcid.org/0000-0001-6711-1715, Chen, Jie ORCID: https://orcid.org/0000-0002-4076-7121 and Wood, Geoffrey 2018. Organization capital, labor market flexibility, and stock returns around the world. Journal of Banking and Finance 89 , pp. 150-168. 10.1016/j.jbankfin.2018.02.008

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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.

Item Type:	Article
Date Type:	Publication
Status:	Published
Schools:	Business (Including Economics)
Publisher:	Elsevier
ISSN:	0378-4266
Date of First Compliant Deposit:	19 February 2018
Date of Acceptance:	5 February 2018
Last Modified:	08 Nov 2023 04:13
URI:	https://orca.cardiff.ac.uk/id/eprint/109132

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