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Labour marketisation level and corporate labour investment efficiency: Evidence from China

Year: 2023

Type: article

Abstract: This study investigates the effect of labour marketisation level on corporate labour investment efficiency. Using a sample of Chinese listed firms, we provide evidence that higher labour marketisation level is associated with higher corporate labour investment efficiency. Firms with higher labour marketisation level reduce over‐investment and under‐investment in labour. In the cross‐sectional tests, we discover that this effect is more prominent for private enterprises and firms with stronger product market competition, more financing constraints, and higher labour adjustment costs. We eliminate the impact of other non‐labour investments and ensure that our results are not driven by these investments.

Source: Accounting and Finance

DOI: 10.1111/acfi.13129

Authors: Zhizhu Yuan, Ye Yang, Bai Liu

Institutions: Northeastern University, Central University of Finance and Economics, Jilin University

Language: English

Topic: Corporate Finance and Governance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: bronze

Funder: National Office for Philosophy and Social Sciences