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

Woon Sau Leung; Khelifa Mazouz; Jie Chen; Geoffrey Wood

doi:10.1016/j.jbankfin.2018.02.008

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

Woon Sau Leung
, Khelifa Mazouz
, Jie Chen
, Geoffrey Wood

Research output: Contribution to journal › Article › peer-review

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.

Original language	English
Pages (from-to)	150-168
Journal	Journal of Banking and Finance
Volume	89
Early online date	15 Feb 2018
DOIs	https://doi.org/10.1016/j.jbankfin.2018.02.008
Publication status	Published - Apr 2018

Keywords / Materials (for Non-textual outputs)

organization capital
labor market flexibility
intangible assets
stock returns
implied cost of capital

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10.1016/j.jbankfin.2018.02.008

Cite this

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

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{\textquoteright} perspective.",

keywords = "organization capital, labor market flexibility, intangible assets, stock returns, implied cost of capital",

author = "Leung, \{Woon Sau\} and Khelifa Mazouz and Jie Chen and Geoffrey Wood",

year = "2018",

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doi = "10.1016/j.jbankfin.2018.02.008",

language = "English",

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AU - Leung, Woon Sau

AU - Mazouz, Khelifa

AU - Chen, Jie

AU - Wood, Geoffrey

PY - 2018/4

Y1 - 2018/4

N2 - 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.

AB - 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.

KW - organization capital

KW - labor market flexibility

KW - intangible assets

KW - stock returns

KW - implied cost of capital

UR - http://orca.cf.ac.uk/id/eprint/109132

U2 - 10.1016/j.jbankfin.2018.02.008

DO - 10.1016/j.jbankfin.2018.02.008

M3 - Article

SN - 0378-4266

VL - 89

SP - 150

EP - 168

JO - Journal of Banking and Finance

JF - Journal of Banking and Finance

ER -

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

Abstract

Keywords / Materials (for Non-textual outputs)

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