Seybold Report ISSN: 1533-9211
Marwa Bassem Mahan1, Mahdi Atiyah Mohi Al- Jabouri2
Department of Industrial Management, Faculty of administration and Economics, University of Babylon, Babil, Iraq, bus.mahdi.atiyah@uobabylon.edu.iq
Vol 17, No 09 ( 2022 ) | DOI: 10.5281/zenodo.7074207 | Licensing: CC 4.0 | Pg no: 861-881 | Published on: 13-09-2022
Abstract
This research aims to investigate the instability and homogeneity of the workforce in a pricing model, returns and risk of shares and highlight the fact that the costs of adjusting employment are higher for highly skilled workers than for low-skilled workers. The model predicts that the negative relationship between employment and expected return should be more severe in industries that rely more on the movement of highly skilled workers because company employment responds less flexibly to changes in the discount rate when the costs of adjusting employment are higher. In the model, we show that predicting a change in equity returns also applies to additional sources of labour force heterogeneity such as high wage rates for highly skilled workers. Experimentally, we document the impact of reflected information on the movement of workers in the expected return indicators for employment and the results have shown that there is a moral impact of independent variable indicators in the variable indicators of return and risk compared to the research sample companies, through sub-samples, and in both company-wide and sector-wide analyses. Together, our results show that the instability and homogeneity of the workforce affect asset prices in financial markets.
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