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
Date Written: February 29, 2016
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: Suggested Citation