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> The results show that policy-makers should be aware of such a practice as it causes significant job fatigue and distorts market signals. > distorts market si
by xyst 2y ago
> The results show that policy-makers should be aware of such a practice as it causes significant job fatigue and distorts market signals.
> distorts market signals
This is a feature, not a bug. Wall Street analysts have been using job posts as a signal for years to measure company current and future performance.
* positive signal: more job posts compared to previous quarter, so company must be healthy! Buy, Buy, Buy!
* negative signal: uh oh, less open job posts compared to previous quarter, must indicate bad quarter, hiring freeze, pending layoffs. Sell, Sell, Sell!
* neutral signal: less job posts for past 2 quarters, no increase in staff spend. Company probably cooking the books and pumping the next quarterly numbers.
I blame wall street.
- pylua 2y agoAre you suggesting that companies are committing FRAUD ?
- lazide 2y agograbs pearls oh no! I mean we literally elected a president who was convicted of falsifying business records (a form of fraud).
- hwbehrens 2y agoFrom my reading (IANAL), there are three types of occupational fraud: asset misappropriation, corruption, and financial statement fraud. Since job posting are interpreted as a positive signal but are not (it seems) typically and explicitly included in formal financial statements, this wouldn't rise to the level of criminal fraud.
- pylua 2y agoI am also not a lawyer, but it seems like purposefully lying about how many jobs you have in order to increase the stock price seems… shady at best.