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


  • 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.

published proceedings


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