Labor Hiring, Investment, and Stock Return Predictability in the Cross Section

By Frederico Belo, Xiaoji Lin, Santiago Bazdresch. Journal of Political Economy, 2014

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Digesting Anomalies: An Investment Approach (2015, background): “Following Belo, Lin, and Bazdresch (2014), at the end of June of year t , we measure the firm-level hiring rate (H/N) as (Nt−1 −Nt−2)/(0.5Nt−1 +0.5Nt−2), in which Nt−1 is the number of employees (Compustat annual item EMP) from the fiscal year ending in calendar year t −1.”
A Theory of Firm Characteristics and Stock Returns: The Role of Investment-Specific Shocks (2012, unknown): “In Zhang (2005) and Bazdrech et al. (2009), operating leverage leads to a negative relation between productivity and systematic risk, as captured by market beta.”
Firm-Level Productivity, Risk, and Return (2014, unknown): “Firms are equity financed and face a perfectly elastic supply of labor at a given stochastic equilibrium real wage rate Wt as in Bazdresch, Belo, and Lin (2010) and Jones and Tüzel (Forthcoming).”
Labor Mobility: Implications for Asset Pricing (2014, background): “The main departure point from the literature is that, in my work, labor decisions made by workers affect firm risk, whereas the determinant of firm risk are decisions made by equity holders on investments in Berk, Green, and Naik (1999), Carlson, Fisher, and Giammarino (2004), and Zhang (2005), or o”