The Market's Reaction to Changes at the Employee Level: Evidence from the Boston Celtics
39 Pages Posted: 28 Aug 2016
Date Written: August 26, 2016
Using data on the National Basketball Association’s (NBA) Boston Celtics, which traded on the New York Stock Exchange from 1986 to 1998, I investigate the effect of changes in labor on stock prices. Several findings emerge. The market positively values a top-level education when hiring inexperienced employees. The market punishes firms that dismiss employees with many years of professional experience. The results of this study are generalizable to traditional firms.
Keywords: Labor and Finance, Corporate Governance
JEL Classification: G30, G34, J24, J42
Suggested Citation: Suggested Citation