Health Capital, Firm Investment, and Shareholder Value

Holland, Sara

doi:10.2139/ssrn.1674508

Abstract

References (47)

Download This Paper | Share | Email |Add to Briefcase | Purchase Bound Hard Copy

Health Capital, Firm Investment, and Shareholder Value

Sara B. Holland

University of Georgia - C. Herman and Mary Virginia Terry College of Business

June 13, 2012

Abstract:
In 2005, U.S. employers spent more than $500 billion on health insurance. I show how a firm's health capital investment depends on human capital, labor productivity, and firm size. Firms mitigate depreciation in human capital by investing in health to increase the productivity of human and physical capital. Using firm-level health insurance data, I find firms that have higher labor productivity and spend more on research and development invest more in health capital. Health capital investment positively affects firm value. To identify this effect, I instrument for insurance with state mandates and the number of persons covered by insurance contracts.

Number of Pages in PDF File: 41

working papers series

Download This Paper

Date posted: September 9, 2010 ; Last revised: June 14, 2012

Suggested Citation

Holland, Sara B., Health Capital, Firm Investment, and Shareholder Value (June 13, 2012). Available at SSRN: http://ssrn.com/abstract=1674508 or http://dx.doi.org/10.2139/ssrn.1674508

Contact Information

Sara B. Holland (Contact Author)

University of Georgia - C. Herman and Mary Virginia Terry College of Business ( email )

Athens, GA 30602-6254
United States