Predicting Company Performance With Company Benefit Plans

In this research note, Alan Kwan Ph.D (University of Hong Kong) explores the information content of employee benefit plans (Form 5500 filings) from Axiomatic Data for predicting company stock returns.

Leveraging Axiomatic data's capability to track these filings in real time, Alan Kwan shows that simple indicators of company growth derived from benefit plans predict company stock returns. The returns to this strategy exceed compensation for market risk. Companies scoring well on employee benefits outperform especially well during the Covid 19 pandemic.

Complete Paper can be downloaded here