1 STAR TURNOVER AND THE VALUE OF HUMAN CAPITAL Evidence from Broadway Shows By Shu Han* and S. Abraham Ravid** This version: January 2018 Key Words: Human Capital, Turnover, Stars, Theater Shows. JEL codes: L82, M51, Z11, J63. *Associate Professor, Sy Syms School of Business, Yeshiva University, 500 W. 185th St. NY 10033,
[email protected] ** Sy Syms Professor of Finance , Sy Syms School of Business, Yeshiva University, 500 W. 185th St. NY 10033.
[email protected]. Research Fellow, Knut Wicksell Center for Financial Studies, Lund University. We thank seminar participants at the 16th annual Mallen movie economics conference at Yale, participants in seminars at Yeshiva University and Lund University, as well as at NYU in particular David Yermack and Yakov Amihud, participants in seminars at Ben Gurion University, Haifa University and Tel Aviv College as well as participants in the FIRCG conference in Melbourne, 2017 especially the discussant, Michael Smith and participants in the creative industries conference at NYU, 2017 and FMA 2017, especially the discussant Lorenzo Casaveccia. We thank participants in ASSA meetings 2018 especially the discussant, Darren Filson. We also thank participants at the AIMAC conference in France, 2015, in particular Allegre Hadida and Pier Mannucci for useful comments and suggestions on this and on an earlier version of the paper. We thank Lauren Cohen, Liran Einav, Kose John, Raghu Rau Stephen Brown and Olav Sorenson for very useful comments and conversations as well as Sara Ravid for suggestions. We thank Carolee Carmello and Gregg Edelman for many useful discussions based on their decorated Broadway career. We thank Charlotte St Martin, President of the Broadway League, and the League’s research staff for very helpful discussions.