Inalienable Customer Capital, Corporate Liquidity, and Stock Returns Academic Article

abstract

• ABSTRACTWe develop a model in which customer capital depends on key talents' contribution and pure brand recognition. Customer capital guarantees stable demand but is fragile to financial constraints risk if retained mainly by talents, who tend to quit financially constrained firms, damaging customer capital. Using a proprietary, granular brandperception survey, we construct a firmlevel measure of the inalienability of customer capital (ICC) that captures the degree to which customer capital depends on talents. Firms with higher ICC have higher average returns, higher talent turnover, and more precautionary financial policies. The ICCsorted longshort portfolio's spread comoves with financial constraintsfactor.

authors

• Wu, Wei

published proceedings

• JOURNAL OF FINANCE

altmetric score

• 4.5

author list (cited authors)

• Dou, W. W., Ji, Y., Reibstein, D., & Wu, W.

citation count

• 39

complete list of authors

• Dou, Winston Wei||Ji, Yan||Reibstein, David||Wu, Wei

publication date

• February 2021

publisher

• Wiley  Publisher

published in

• The Journal of Finance  Journal

keywords

• 35 Commerce, Management, Tourism And Services
• 3502 Banking, Finance And Investment
• 38 Economics
• 3801 Applied Economics

Digital Object Identifier (DOI)

• 10.1111/jofi.12960

start page

• 211

end page

• 265

volume

• 76

issue

• 1

URL

• http://dx.doi.org/10.1111/jofi.12960