Long-term Attachments and Long-Run Firm Rates of Return
Date
Authors
Major Professor
Advisor
Committee Member
Journal Title
Journal ISSN
Volume Title
Publisher
Authors
Research Projects
Organizational Units
Journal Issue
Is Version Of
Versions
Series
Department
Abstract
Long-term attachments between workers and firms are common. Numerous studies have examined worker returns to tenure, but little is known of firm returns to firm-worker matches. Yet these attachments represent a human capital asset quasi-held by the firm, which is not captured by traditional accounting measures of firm assets. Firms with large quasi-holdings of human capital will have higher measured return on assets, other things equal. Analysis of data on 250 large manufacturing firms supports the view that firms profit from long-term attachments with their workers. Consequently, unmeasured human capital assets contribute to the explanation of persistence in measured long-run excess profits across
Comments
This is the peer reviewed version of the following article: Orazem, Peter F., Marvin Bouillon and B. Michael Doran. 2004. “Long-term Attachments and Long-Run Firm Rates of Return.” Southern Economic Journal 71 (2):314-333, which has been published in final form at DOI: 10.2307/4135294. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving.