The Bright Side of Corporate Diversification: Evidence from Internal Labor Markets

• 成果类型: Article
• 署名作者: Tate, Geoffrey; Yang, Liu
• 署名单位: University of North Carolina; University of North Carolina Chapel Hill; University System of Maryland; University of Maryland College Park
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhv012
• 发表日期: 2015
• 页码: 2203
• 关键词: capital-markets; CONGLOMERATE FIRMS; INVESTMENT; discount; COSTS

摘要

We document differences in human-capital deployment between diversified and focused firms. We find that diversified firms have higher labor productivity and that they redeploy labor to industries with better prospects in response to changing opportunities. The opportunities and incentives provided in internal labor markets in turn affect the development of workers' human capital. We find that workers more frequently transition to other industries in which their diversified firms operate and with smaller wage losses compared with workers in the open market, even when they leave their original firms. Overall, internal labor markets provide a bright side to corporate diversification.