Publication
Labour intensity and systematic risk
| dc.contributor.author | Francisco, Paulo Morais | |
| dc.date.accessioned | 2025-10-17T11:48:15Z | |
| dc.date.available | 2025-10-17T11:48:15Z | |
| dc.date.issued | 2025-12 | |
| dc.description.abstract | We examine whether firms labour intensity raises systematic risk. Drawing on 12,250 listed, non financial companies from 93 countries, we analyse CAPM betas over five , three and two year windows and separately evaluate their upside (β+) and downside (β− ) components. OLS results show that a one standard deviation increase in labour intensity lifts the five year beta by 0.08 and loads disproportionately on downside risk. Instrumenting labour intensity in a 2SLS framework magnifies the effect, confirming a causal link. Overall, our evidence shows that labour intensive firms worldwide carry higher betas because fixed wage bills magnify operating leverage; the extra risk is most visible when markets decline, making a company’s workforce composition a key driver of its equity risk. | eng |
| dc.identifier.doi | 10.1016/j.frl.2025.108475 | |
| dc.identifier.issn | 1544-6123 | |
| dc.identifier.uri | http://hdl.handle.net/10400.1/27832 | |
| dc.language.iso | eng | |
| dc.peerreviewed | yes | |
| dc.publisher | Elsevier | |
| dc.relation | CSG - Research in Social Sciences and Management | |
| dc.relation.ispartof | Finance Research Letters | |
| dc.rights.uri | http://creativecommons.org/licenses/by/4.0/ | |
| dc.subject | Labour intensity | |
| dc.subject | Employees | |
| dc.subject | Asymmetric risk | |
| dc.subject | Systematic risk | |
| dc.title | Labour intensity and systematic risk | eng |
| dc.type | journal article | |
| dspace.entity.type | Publication | |
| oaire.awardTitle | CSG - Research in Social Sciences and Management | |
| oaire.awardURI | info:eu-repo/grantAgreement/FCT/6817 - DCRRNI ID/UIDB%2F04521%2F2020/PT | |
| oaire.citation.startPage | 108475 | |
| oaire.citation.title | Finance Research Letters | |
| oaire.citation.volume | 86 | |
| oaire.fundingStream | 6817 - DCRRNI ID | |
| oaire.version | http://purl.org/coar/version/c_970fb48d4fbd8a85 | |
| person.familyName | Francisco | |
| person.givenName | Paulo Morais | |
| person.identifier.ciencia-id | CD18-B229-B04B | |
| person.identifier.orcid | 0000-0001-6632-3097 | |
| person.identifier.scopus-author-id | 56478668900 | |
| project.funder.identifier | http://doi.org/10.13039/501100001871 | |
| project.funder.name | Fundação para a Ciência e a Tecnologia | |
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| relation.isAuthorOfPublication.latestForDiscovery | 1765bde5-8c14-4c7d-9ce9-5bc93887aeff | |
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