J.P. MorgaN Research

We are thrilled that J.P. Morgan has released its fourth research note, “Human Capital Factor: What Drives Employees, Intrinsic or Extrinsic Factors?”, continuing their independent validation of the unique alpha and portfolio outperformance of the Human Capital Factor®. This compelling publication from Institutional Investor’s top quantitative research firm takes a deep dive into the 7 Dimensions which comprise the Human Capital Factor®.

Below are a few highlights:

“Long term the Human Capital Factor delivers 4.0% annual returns in excess of the benchmark and 3.8% in excess of the low Human Capital Factor stock portfolio.”

“The implication is that since human capital is not accounted for on balance sheets, there [is] exists the opportunity to gain enhanced returns by correctly identifying those companies which have superior human capital.”

“Simply put, employees respond to more than pay, rewards and compensation to be highly motivated and productive in the workplace. Being able to capture and measure both intrinsic and extrinsic motivational criteria does not only help employers but may also lead to better stock price returns.”

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Fill out the form below to download all four J.P. Morgan Research Notes including:

• The Human Capital Factor: What Drives Employees, Intrinsic or Extrinsic Factors? (August 2023);

• ‘Measuring an Intangible Asset: The Human Capital Factor.’ (November 2022);

• ‘Creating an Innovation Culture Score Using Human Capital Factor Data’ (January 2022); and

• ‘Introducing the Human Capital Factor’ (March 2021).