Product Market Competition, Labor Mobility, and the Cross-Section of Stock Returns

IF 2.2 Q2 BUSINESS, FINANCE

Review of Asset Pricing Studies Pub Date : 2023-01-09 DOI:10.1093/rapstu/raad001

Shamim Ahmed, Ziwen Bu, Xiaoxia Ye

引用次数: 1

Abstract

Abstract This paper explores the impact of product market competition on the positive relation between labor mobility (LM) and future returns. We develop a production-based model and formalize the intuition that low exposure to systematic risk in a concentrated industry limits LM’s amplifying effect on operating leverage. Therefore, the model predicts a stronger positive relation between LM and expected returns for firms in competitive industries. Consistent with the model’s prediction, we empirically find that LM predicts returns only among firms in competitive industries. This evidence suggests that the intensity of competition in firms’ product market potentially drives the positive LM-return relation. (JEL G12, G14, J69) Authors have furnished an Internet Appendix, which is available on the Oxford University Press Web site next to the link to the final published paper online.

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产品市场竞争、劳动力流动与股票收益横截面

摘要本文探讨了产品市场竞争对劳动力流动性(LM)与未来收益正相关关系的影响。我们开发了一个基于生产的模型，并形式化了一个直觉，即在集中的行业中，低暴露于系统性风险限制了LM对经营杠杆的放大效应。因此，该模型预测竞争行业企业的LM与预期收益之间存在更强的正相关关系。与模型预测一致的是，我们实证发现LM只预测了竞争行业企业的收益。这一证据表明，企业产品市场的竞争强度潜在地推动了正向的lm -回报关系。(JEL G12, G14, J69)作者提供了一份互联网附录，可以在牛津大学出版社的网站上找到，紧邻在线发表的最终论文的链接。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Review of Asset Pricing Studies BUSINESS, FINANCE-

CiteScore

19.80

自引率

0.80%

发文量

期刊介绍： The Review of Asset Pricing Studies (RAPS) is a journal that aims to publish high-quality research in asset pricing. It evaluates papers based on their original contribution to the understanding of asset pricing. The topics covered in RAPS include theoretical and empirical models of asset prices and returns, empirical methodology, macro-finance, financial institutions and asset prices, information and liquidity in asset markets, behavioral investment studies, asset market structure and microstructure, risk analysis, hedge funds, mutual funds, alternative investments, and other related topics. Manuscripts submitted to RAPS must be exclusive to the journal and should not have been previously published. Starting in 2020, RAPS will publish three issues per year, owing to an increasing number of high-quality submissions. The journal is indexed in EconLit, Emerging Sources Citation IndexTM, RePEc (Research Papers in Economics), and Scopus.