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Labor and the Market Value of the Firm Author info | Abstract | Publisher info | Download info | Related research | Statistics Monika Merz
Eran Yashiv
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What role does labor play in firms' market value? We use a production-based asset pricing model with factor adjustment costs and forward-looking agents to explore this question. We posit that the hiring of labor is akin to investment in capital and that the two interact, with the interaction being a crucial determinant of the dynamic behavior of market value. Using aggregate US corporate sector data, we estimate firms' optimal hiring and investment decisions and the consequences for firms' value. (JEL E22, E24, G31, G32, M51)
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Article provided by American Economic Association in its journal American Economic Review .
Volume (Year): 97 (2007)
Issue (Month): 4 (September)
Pages: 1419-1431
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Handle: RePEc:aea:aecrev:v:97:y:2007:i:4:p:1419-1431Contact details of provider: Email: Web page: http://www.aeaweb.org/aer/ More information through EDIRC
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Paper Merz, Monika & Yashiv, Eran, 2003.
"Labor and the Market Value of the Firm ,"
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[Downloadable!] (restricted) References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.: Steven A. Barnett & Plutarchos Sakellaris, 1999.
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[Downloadable!] (restricted) Russell Cooper & Joao Ejarque, 2003.
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Jason G. Cummins & Kevin A. Hassett & R. Glenn Hubbard, 1995.
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NBER Reprints
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references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
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[Downloadable!] (restricted) Gourio, Francois & Kashyap, Anil K, 2007.
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M. Scarlato & M. Cenci, 2004.
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Eran Yashiv, 2006.
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