Shareholder bargaining power and labor income share: Evidence from a quasi-natural experiment in China

Guannan Liu, Anqi Wang, Kedi Wang and Qiuyun Zhao

Finance Research Letters, 2024, vol. 59, issue C

Abstract: Drawing upon the deregulation of initial public offerings (IPOs) in China, our study reveals a substantial and negative correlation between shareholder bargaining power and the labor income share. This association is particularly pronounced in companies with a higher proportion of institutional investor holdings, within more competitive industries, and those grappling with more severe financing constraints. For scholars exploring the distributive impact of capital market regulatory policies, we emphasize a cautionary note: shareholder capitalism could expedite the erosion of the labor share, potentially exacerbating inequality.

Keywords: Shareholder bargaining power; Labor income share; Registration-based IPO system (search for similar items in EconPapers)
JEL-codes: D33 G32 G34 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1544612323012011
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:59:y:2024:i:c:s1544612323012011

DOI: 10.1016/j.frl.2023.104829

Access Statistics for this article

Finance Research Letters is currently edited by R. Gençay

More articles in Finance Research Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().