Harry Markowitz developed the portfolio theory model in 1952. His theory is how risk-averse
investors create optimal portfolios that maximize expected returns for a given level of risk …

The relative size and inflexibility of labor expenses lead to a form of operating leverage,
which we call labor leverage. We derive a set of conditions for the existence of labor …

Previous studies have identified a negative relation between firms' hiring rates and future
stock returns in the cross-section. We document that this relation is significantly steeper in …

This paper studies the asset pricing implications of a firm's opportunities to replace routine‐
task labor with automation. I develop a model in which firms optimally undertake such …

Since the mid-2000s there has been an increasing divergence in unemployment rates
across EU countries and age groups. We argue that this divergence has to do with labor …

The present study introduce the human capital component to the Fama and French five-
factor model proposing an equilibrium six-factor asset pricing model. The study employs an …

We compare major factor models and find that the Stambaugh and Yuan (2016) 4-factor
model is the overall winner in the time-series domain. The Hou, Xue, and Zhang (2015) q …

We identify a shock that explains the bulk of fluctuations in equity risk premia, and show that
the shock also explains a large fraction of the business-cycle comovements of output …

Job vacancy duration reflects the time a firm spends searching, selecting, and hiring for a job
opening. Capturing vacancy duration using the creation and deletion dates of job postings …

This study investigates the impact of human capital (HC) quality on stock returns. We
propose a measure of the quality of HC embedded in firms' organization capital and show …