 How do job vacancy rates predict firm performance? A web crawling massive data perspectiveHuai-Chun Lo, Kees G. Koedijk, Xiang Gao and Yuan-Teng Hsu Pacific-Basin Finance Journal, 2020, vol. 62, issue C Abstract: Traditionally, the relationship between a firm's performance and its business strategy is studied using structured data taken from proxy statements and financial reports. However, there have been increasing efforts to explore the linkages between corporate outcomes and unstructured information, such as text or image/audio/video files. Until recently, semi-structured data had been largely overlooked. Given that a substantial amount of such data can be extracted using web crawler techniques and then processed using big data solutions, the current study employed this procedure to investigate whether dynamic job vacancy postings by Taiwanese publicly listed companies are associated with subsequent stock returns and operating ratios. We report that new job openings foreshadow a firm's operating performance, both indirectly, by boosting stock prices, and directly, by signaling positive developments. This finding remains robust to tests addressing endogeneity concerns and the adoption of alternative specifications. We thus shed light on the role of metadata in financial analysis. Keywords: Job vacancy; Web crawler; Big data; Firm performance; Corporate strategy (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:pacfin:v:62:y:2020:i:c:s0927538x20300731 DOI: 10.1016/j.pacfin.2020.101371 Access Statistics for this article Pacific-Basin Finance Journal is currently edited by K. Chan and S. Ghon Rhee More articles in Pacific-Basin Finance Journal from Elsevier |
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