Belo, Frederico; Lin, Xiaoji; Bazdresch, Santiago - Charles A. Dice Center for Research in Financial … - 2012
We study the impact of labor market frictions on asset prices in the cross section of US publicly traded firms. On average, firms with low hiring rates have higher future stock returns than firms with high hiring rates, a difference of 5.2% per annum. Interpreting a hiring decision as analogous...