The cross-section of labor leverage and equity returns

• 成果类型: Article
• 署名作者: Donangelo, Andres; Gourio, Francois; Kehrig, Matthias; Palacios, Miguel
• 署名单位: University of Texas System; University of Texas Austin; Federal Reserve System - USA; Federal Reserve Bank - Chicago; Duke University; University of Calgary
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2018.10.016
• 发表日期: 2019
• 页码: 497-518
• 关键词: Labor leverage; labor share; Operating leverage; Expected returns; Capital-labor complementarity

摘要

The relative size and inflexibility of labor expenses lead to a form of operating leverage, which we call labor leverage. We derive a set of conditions for the existence of labor leverage even when labor markets are frictionless. Our model provides theoretical support for the use of firm-level labor share as a measure of labor leverage. Using Compustat/CRSP and confidential Census data, we provide evidence for the existence and for the economic significance of labor leverage: high labor share firms have operating profits that are more sensitive to economic shocks and have higher expected returns. (C) 2018 Elsevier B.V. All rights reserved.