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Stock Returns and Employee Turnover

Sum, V. & Chorlian, J. (2012). Stock returns and employee turnover. International Economics and Finance Journal, 7(2), 347-354.

9 Pages Posted: 9 May 2012 Last revised: 25 Sep 2012

Vichet Sum

University of Maryland Eastern Shore - School of Business and Technology

Jack Chorlian

affiliation not provided to SSRN

Date Written: May 9, 2012

Abstract

This paper analyses risk premiums and risk-adjusted excess returns of a portfolio of firms with low employee turnover from 2006 to 2011. The results show that average risk premiums of an equal-weighted portfolio of firms with low employee turnover are economically superior than the CRSP value-weighted index risk premiums 5 years in a row from 2007 to 2011 and are economically greater than the S&P 500 index risk premiums from 2007 to 2011 (except 2010). The portfolio exhibits average positive risk-adjusted excess returns for the 3-year and 5-year holding period intervals; this suggests that firms with low employee turnover should be able to enjoy superior benefits and performance in the long run.

Keywords: Risk premiums, risk adjusted excess returns, employee turnover

JEL Classification: G11, G12, G14

Suggested Citation

Sum, Vichet and Chorlian, Jack, Stock Returns and Employee Turnover (May 9, 2012). Sum, V. & Chorlian, J. (2012). Stock returns and employee turnover. International Economics and Finance Journal, 7(2), 347-354.. Available at SSRN: https://ssrn.com/abstract=2055399 or http://dx.doi.org/10.2139/ssrn.2055399

Vichet Sum (Contact Author)

University of Maryland Eastern Shore - School of Business and Technology ( email )

2105 Kiah Hall
Princess Anne, MD 21853
United States
410-651-6531 (Phone)
410-651-6529 (Fax)

HOME PAGE: http://www.umes.edu/bma/Sum.html

Jack Chorlian

affiliation not provided to SSRN

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