Izvorni znanstveni članak
https://doi.org/10.1080/1331677X.2023.2183518
Firm leverage and labour share: evidence from China
Wenlong Liu
Zhen Yang
Jiapeng An
Sažetak
We examine the relationship between firm leverage and firm-level
labour shares by using the panel threshold effect model. Based on
the sample of Chinese firms listed in the Shanghai Stock Exchange
(SHSE) and the Shenzhen Stock Exchange (SZSE) from 2010 to 2019,
we find that leverage has a significant threshold effect on the labour
share of firms, and on average, firm leverage is positively associated
with the labour share when the debt per labour is less than 640,000
CNY (approximate 89,600 USD). When the firm leverage exceeds the
threshold, firm leverage is negatively associated with labour share.
We also find significant heterogeneity over state-owned enterprises
(SOEs) and non-state-owned enterprises (non-SOEs), capital-intensive
firms and labour-intensive firms, firms with different levels of
financial constraints and firms in different life cycles. We contribute
to prior literature by revealing the nonlinear association between
leverage and firm-level labour share. Therefore, various policies (e.g.
made credit policy to restrict lending to firms without sustainable
profitability) must be implemented to increase the labour share of
enterprises as well as achieve the higher-quality development of
the economy in the long term.
Ključne riječi
Leverage; income distribution; labour share; threshold effect
Hrčak ID:
314051
URI
Datum izdavanja:
20.3.2023.
Posjeta: 65 *