LABOR INTENSITY AND OPERATING LEVERAGE IN MANUFACTURING FIRMS

Figen Güneş Doğan

doi:10.18825/irem.81315

LABOR INTENSITY AND OPERATING LEVERAGE IN MANUFACTURING FIRMS

Öz

I show that industry adjusted labor intensity is positively related to expected returns for firms in the manufacturing industry. Labor is one the most important factor of productions for a firm. When a negative shock hits the economy, revenues fall. However, labor costs do not fall as much as revenues. On average at the firm level, revenues are more procyclical than labor costs and labor costs are less procyclical than capital expenditures. Therefore, firms with relatively high labor intensity are more vulnerable to the business cycle than those with less labor intensity. I also show that firms with higher labor intensity have higher cash flow sensitivity to the aggregate shocks. This result supports the operating leverage mechanism behind the labor intensity and return relationship.

Anahtar Kelimeler

Labor intensity,Operating leverage,Cross section of expected returns

Kaynakça

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Ayrıntılar

Birincil Dil

Türkçe

Konular

-

Bölüm

Araştırma Makalesi

Yazarlar

Figen Güneş Doğan
TOBB University of Economics and Technology, Department of Management

Yayımlanma Tarihi

6 Ocak 2016

Gönderilme Tarihi

10 Ocak 2017

Kabul Tarihi

30 Haziran 2016

Yayımlandığı Sayı

Yıl 2015 Cilt: 3 Sayı: 1

DOI

https://doi.org/10.18825/irem.81315

IZ

https://izlik.org/JA96YS97FM

Kaynak Göster

RIS / Bibtex

APA

Güneş Doğan, F. (2016). LABOR INTENSITY AND OPERATING LEVERAGE IN MANUFACTURING FIRMS. International Review of Economics and Management, 3(1), 1-13. https://doi.org/10.18825/irem.81315

AMA

1.Güneş Doğan F. LABOR INTENSITY AND OPERATING LEVERAGE IN MANUFACTURING FIRMS. IREM. 2016;3(1):1-13. doi:10.18825/irem.81315

Chicago

Güneş Doğan, Figen. 2016. “LABOR INTENSITY AND OPERATING LEVERAGE IN MANUFACTURING FIRMS”. International Review of Economics and Management 3 (1): 1-13. https://doi.org/10.18825/irem.81315.

EndNote

Güneş Doğan F (01 Ocak 2016) LABOR INTENSITY AND OPERATING LEVERAGE IN MANUFACTURING FIRMS. International Review of Economics and Management 3 1 1–13.

IEEE

[1]F. Güneş Doğan, “LABOR INTENSITY AND OPERATING LEVERAGE IN MANUFACTURING FIRMS”, IREM, c. 3, sy 1, ss. 1–13, Oca. 2016, doi: 10.18825/irem.81315.

ISNAD

Güneş Doğan, Figen. “LABOR INTENSITY AND OPERATING LEVERAGE IN MANUFACTURING FIRMS”. International Review of Economics and Management 3/1 (01 Ocak 2016): 1-13. https://doi.org/10.18825/irem.81315.

JAMA

1.Güneş Doğan F. LABOR INTENSITY AND OPERATING LEVERAGE IN MANUFACTURING FIRMS. IREM. 2016;3:1–13.

MLA

Güneş Doğan, Figen. “LABOR INTENSITY AND OPERATING LEVERAGE IN MANUFACTURING FIRMS”. International Review of Economics and Management, c. 3, sy 1, Ocak 2016, ss. 1-13, doi:10.18825/irem.81315.

Vancouver

1.Figen Güneş Doğan. LABOR INTENSITY AND OPERATING LEVERAGE IN MANUFACTURING FIRMS. IREM. 01 Ocak 2016;3(1):1-13. doi:10.18825/irem.81315