offshoring potential carry a sizeable risk premium compared to industries with high offshoring potential, suggesting that the … possibility to offshore affects industry risk. A two-country dynamic trade model in which offshoring allows firms to secure market …

Employment growth (EG) is likely related to liquidity fundamentals of investment opportunities, firm health, and … information environment. This, in turn, implies that liquidity risk may play a role in explaining the relation between employment … growth and stock returns. We explain the link between employment growth and liquidity risk with a parsimonious model and find …