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

Leung, WS and Mazouz, K and Chen, J and Wood, G (2018) 'Organization capital, labor market flexibility, and stock returns around the world.' Journal of Banking and Finance. ISSN 0378-4266

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Abstract

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
Uncontrolled Keywords: Organization Capital, Labor Market Flexibility, Intangible Assets, Stock Returns, Implied Cost of Capital
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
H Social Sciences > HG Finance
Divisions: Faculty of Social Sciences > Essex Business School
Depositing User: Elements
Date Deposited: 22 Feb 2018 14:06
Last Modified: 22 Feb 2018 14:06
URI: http://repository.essex.ac.uk/id/eprint/21529

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