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Article
Stock returns and employee turnover
International Economics and Finance Journal (2012)
  • Vichet Sum
  • Jack Chorlian, University of La Verne
Abstract

This paper analyses risk premiums and risk-adjusted excess returns of a portfolio of firms with low employee turnover from 2006 to 2011. The results show that average risk premiums of an equal-weighted portfolio of firms with low employee turnover are economically superior than the CRSP value-weighted index risk premiums 5 years in a row from 2007 to 2011 and are economically greater than the S&P 500 index risk premiums from 2007 to 2011 (except 2010). The portfolio exhibits average positive risk-adjusted excess returns for the 3-year and 5-year holding period intervals; this suggests that firms with low employee turnover should be able to enjoy superior benefits and performance in the long run.

Keywords
  • Risk premiums,
  • risk adjusted excess returns,
  • employee turnover
Publication Date
November 29, 2012
Citation Information
Vichet Sum and Jack Chorlian. "Stock returns and employee turnover" International Economics and Finance Journal Vol. 7 Iss. 2 (2012)
Available at: http://works.bepress.com/vichetsum/15/