Product Market Competition, Labor Mobility, and the Cross-Section of Stock Returns
研究了产品市场竞争如何影响劳动力流动性与未来股票收益的正相关关系，发现该关系仅存在于竞争性行业的企业中，表明竞争强度驱动了劳动力流动性与收益的正向关联。
Abstract This paper explores the impact of product market competition on the positive relation between labor mobility (LM) and future returns. We develop a production-based model and formalize the intuition that low exposure to systematic risk in a concentrated industry limits LM’s amplifying effect on operating leverage. Therefore, the model predicts a stronger positive relation between LM and expected returns for firms in competitive industries. Consistent with the model’s prediction, we empirically find that LM predicts returns only among firms in competitive industries. This evidence suggests that the intensity of competition in firms’ product market potentially drives the positive LM-return relation. Authors have furnished an Internet Appendix, which is available on the Oxford University Press Web site next to the link to the final published paper online.