The Effect of the Growth in Labor Hours Per Worker on Future Stock Returns, Hiring and Profitability

Review of Finance, Forthcoming

46 Pages Posted: 6 Oct 2015 Last revised: 2 Sep 2016

See all articles by Li Gu

Li Gu

Federal Reserve Board

Dayong Huang

University of North Carolina (UNC) at Greensboro - Bryan School of Business & Economics

Date Written: February 29, 2016

Abstract

A high growth rate in labor hours per worker signals low future stock market returns and high future hiring. In the presence of an increase in the number of labor hours per worker, hiring becomes less responsive to the future discount rate. The growth rate in the number of labor hours per worker does not appear to be related to future profitability.

Keywords: Labor hours per worker; Asset returns

JEL Classification: G12

Suggested Citation

Gu, Li and Huang, Dayong, The Effect of the Growth in Labor Hours Per Worker on Future Stock Returns, Hiring and Profitability (February 29, 2016). Review of Finance, Forthcoming. Available at SSRN: https://ssrn.com/abstract=2669452 or http://dx.doi.org/10.2139/ssrn.2669452

Li Gu (Contact Author)

Federal Reserve Board ( email )

20th Street and Constitution Avenue NW
Washington, DC 20551
United States

Dayong Huang

University of North Carolina (UNC) at Greensboro - Bryan School of Business & Economics ( email )

401 Bryan Building
Greensboro, NC 27402-6179
United States

HOME PAGE: http://sites.google.com/a/uncg.edu/dayong-huang/

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