RT Journal Article
SR Electronic
T1 Quality of the Firm’s Training and Stock Returns
JF The Journal of Wealth Management
FD Institutional Investor Journals
SP 48
OP 54
DO 10.3905/jwm.2014.16.4.048
VO 16
IS 4
A1 Vichet Sum
YR 2014
UL https://pm-research.com/content/16/4/48.abstract
AB This article examines whether firms in the United States that have quality training programs can enjoy above-the-market-average benefits and performance. We analyze risk premiums and risk-adjusted excess returns of a portfolio of public firms in the United States that are ranked in the top 50 of the Training Top 125 consecutively from 2006 to 2011, in order to determine if the portfolio risk premiums are higher than the market risk premiums, and whether the portfolio can generate positive risk-adjusted excess returns. The portfolio average risk premiums are all positive and economically greater than the market risk premiums for the five-year holding period intervals. All of the portfolio average risk-adjusted excess returns from the single-index and four-factor models are positive (some are statistically significant) for the three-year and five-year holding period intervals. The study shows that on average, firms in the United States that have quality training programs should be able to enjoy above-the-market-average benefits and performance in the long run.TOPICS: Security analysis and valuation, portfolio construction, performance measurement