firm productivity: What we found was surprising, according to Market Watch. Despite the widespread belief that firm productivity is a key driver of stock market returns, our results indicate that fluctuations in productivity play only a small role. With my colleagues, Martin Lettau of the U.C. Berkeley Haas School of Business and Sydney Ludvigson of New York University, I set out to investigate what makes stocks move over time. Far more influential over long periods is the economic redistribution between workers and shareholders meaning how a company's profits are divided between employees and investors. Each firm that is represented in the stock market index produces a stream of revenues. Our first step in this research was to consider which factors might be responsible for movement in the stock market in aggregate.
(news.financializer.com). As
reported in the news.
Tagged under firm productivity, employees investors topics.