Financialization, Employment and Employees’ Income Share——A Study Based on Financial Assets Allocation
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Abstract It is very important for enterprises to finance and improve its way to affect the share of labor income. Few literatures have explored this in detail. According to the time limit of financial assets allocation of non-financial enterprises as a breakthrough, this paper takes the income share of employees of listed companies as the micro proxy index of the labor income share, and studies the influence of the way of enterprise financialization on the income share of employees from the motivation of financial assets allocation. The results show that the total amount of financial assets allocation significantly reduces the share of employees’ income. It is found that the short-term financial asset allocation based on the “preventive saving” motivation will significantly increase the income share of enterprise employees, while the long-term financial asset allocation based on the “profit seeking” motivation will reduce the income share of enterprise employees. The analysis of the impact mechanism shows that the total amount of financial assets allocation and the holding of long-term financial assets reduce the share of employees’ income by reducing employment. Further research shows that the lower the quality of internal control and the higher the opacity of information, the stronger the effect of financial asset allocation on the reduction of employees’ income share, and there is industry heterogeneity. From the micro level, this paper finds that the way of enterprise finance, especially the short-term financial assets, has a positive impact on the labor income share of employees, which provides a certain reference for enterprises to optimize the financial allocation structure.
ZHAO Dezhi,AN Suxia. Financialization, Employment and Employees’ Income Share——A Study Based on Financial Assets Allocation. Economic Survey, 2020, 37(6): 0139.