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https://hdl.handle.net/10419/20201
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DC Field | Value | Language |
---|---|---|
dc.contributor.author | Merz, Monika | en |
dc.contributor.author | Yashiv, Eran | en |
dc.date.accessioned | 2009-01-28T16:12:22Z | - |
dc.date.available | 2009-01-28T16:12:22Z | - |
dc.date.issued | 2003 | - |
dc.identifier.uri | http://hdl.handle.net/10419/20201 | - |
dc.description.abstract | What role does labor play in firms? market value? We explore this question using aproduction-based asset pricing model with frictions in the adjustment of both capital andlabor. We posit that hiring of labor is akin to investment in capital and that the two interact,with the interaction being a crucial determinant of market value behavior.We use aggregate U.S. corporate sector data to estimate firms? optimal hiring and investmentdecisions and the consequences for firms? value. We then decompose this value, therebyquantifying the link between firms? market value and gross hiring flows, employment, grossinvestment and physical capital. We find that a conventional specification – quadraticadjustment costs for capital and no hiring costs – performs poorly. Rather hiring andinvestment flows, unlike employment and capital stocks, are volatile and both are essential toaccount for market volatility. A key result is that firms? value embodies the value of hiring andinvestment over and above the capital stock. | en |
dc.language.iso | eng | en |
dc.publisher | |aInstitute for the Study of Labor (IZA) |cBonn | en |
dc.relation.ispartofseries | |aIZA Discussion Papers |x965 | en |
dc.subject.jel | E24 | en |
dc.subject.jel | E23 | en |
dc.subject.jel | E22 | en |
dc.subject.jel | G12 | en |
dc.subject.ddc | 330 | en |
dc.subject.keyword | production-based asset pricing | en |
dc.subject.keyword | labor market frictions | en |
dc.subject.keyword | gross flows | en |
dc.subject.keyword | Q-model | en |
dc.subject.keyword | GMM | en |
dc.subject.stw | Unternehmenswert | en |
dc.subject.stw | Personalbeschaffung | en |
dc.subject.stw | Investition | en |
dc.subject.stw | Tobin's q | en |
dc.subject.stw | Capital Asset Pricing Model | en |
dc.subject.stw | Marktwert | en |
dc.subject.stw | Schätzung | en |
dc.subject.stw | Theorie | en |
dc.subject.stw | Vereinigte Staaten | en |
dc.title | Labor and the Market Value of the Firm | - |
dc.type | Working Paper | en |
dc.identifier.ppn | 377465968 | en |
dc.rights | http://www.econstor.eu/dspace/Nutzungsbedingungen | en |
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