Year: 2025
Type: article
Abstract: Controlling for firm characteristics and risk, we find that inter‐firm human capital migration network centrality (HCMNC) is a strong predictor of future stock returns. Using publicly available employee profiles, we show that a portfolio based on HCMNC yields an annualized four‐factor alpha of 5.5%. The predictive power of HCMNC is stronger for firms with lower investor attention and higher valuation uncertainty. HCMNC also correlates with higher future operating performance and profitability, suggesting that the market underreacts to HCMNC.
Source: Review of Financial Economics
DOI: 10.1002/rfe.70002
Authors: Eric McKee, Yuanyang Liu, Gautam Pant, Shagun Pant
Language: English
Subfield: Finance
Domain: Social Sciences
Open Access status: bronze
OpenAlex ID: W3152211772