Information Dispersion across Employees and Stock Returns

• 成果类型: Article
• 署名作者: Agrawal, Ashwini; Hacamo, Isaac; Hu, Zhongchen
• 署名单位: University of London; London School Economics & Political Science; Indiana University System; Indiana University Bloomington
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhaa105
• 发表日期: 2021
• 页码: 4785
• 关键词: earnings management; FINANCIAL RATIOS; job search; INVESTMENT; prediction; MARKET; RISK

摘要

Rank-and-file employees are becoming increasingly critical for many firms, yet we know little about how their employment dynamics matter for stock prices. We analyze new data from the individual CV's of public company employees and find that rank-and-file labor flows can be used to predict abnormal stock returns. Accounting data and survey evidence indicate that workers' labor market decisions reflect information about future corporate earnings. Investors, however, do not appear to fully incorporate this information into their earnings expectations. The findings support the hypothesis that rank-and-file employees' entry and exit decisions reveal valuable insights into their employers' future stock performance.