Financialization, labor income share, and intra-firm pay gap

Zhen Xu, Qingwei Yin and Meiqi Liu

Finance Research Letters, 2025, vol. 72, issue C

Abstract: Empirical analysis using data from China's A-share listed companies between 2008 and 2022 shows that corporate financialization positively affects top managers’ labor income share and increases the internal pay gap. The higher the financing constraint, the stronger the positive effect of corporate financialization. The positive impact of financialization on labor income share was higher in backward than in developed regions. Enterprise financialization in labor-intensive industries increases labor income share, while capital- and technology-intensive industry performances are inhibited.

Keywords: Enterprise financialization; Labor income share; Pay gap; Financing constraint; Heterogeneity (search for similar items in EconPapers)
JEL-codes: D31 E23 E62 F36 H11 H32 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:72:y:2025:i:c:s1544612324013643

DOI: 10.1016/j.frl.2024.106335

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