The Market Reaction to Job Listing Data
Academic Research | Capital Markets | Research
How companies manage and pursue human capital is a key factor in
their long-term market performance. Scholars from the University of
California, the University of Illinois, and the University of Chile
conducted peer-reviewed analysis employing LinkUp’s job listing data,
collected directly from company websites, to examine the relationship
between hiring practices and company growth.
Their findings
demonstrate that changes in job listings are positively associated with a
company’s future performance, and that this relationship is stronger
when listings likely represent growth rather than replacement.
“To
better understand the nature of the information contained in job
postings, we first examine their relation with future number of
employees and financial performance. Consistent with job postings
predicting hiring and employee-related expenditures, we find that
changes in the number of job postings are positively associated with
one-year ahead growth in the number of employees and selling, general,
and administrative expense (SG&A). We also find a positive
association between job postings and one-year ahead growth in sales and
earnings.”
Gutierrez, Elizabeth F. and Lourie, Ben and Nekrasov, Alexander and Shevlin, Terry J. and Shevlin, Terry J., Are Online Job Postings Informative to Investors? (July 16, 2019). Management Science, forthcoming., Available at SSRN: https://ssrn.com/abstract=3342669 or http://dx.doi.org/10.2139/ssrn.3342669
