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The effect of industrial robot adoption on firm value: Evidence from China

Author

Listed:
  • Li, Jianjun
  • Wu, Zhouyi
  • Yu, Kaijia
  • Zhao, Wei

Abstract

This study examines the effect of automated production technology on firm value. Examining evidence from listed Chinese manufacturing companies from 2012 to 2019, our findings show that industrial robot adoption increases firm value, and the effect is more pronounced in labor-intensive industries, private companies, and firms with executive shareholding. Possible mechanisms include operating performance improvement, effective tax rate reduction, net profit margin increase, and agency cost mitigation. This study contributes to a comprehensive evaluation of the overall impact of automation on firms and deepens the understanding of the productivity innovation drivers of firm value.

Suggested Citation

  • Li, Jianjun & Wu, Zhouyi & Yu, Kaijia & Zhao, Wei, 2024. "The effect of industrial robot adoption on firm value: Evidence from China," Finance Research Letters, Elsevier, vol. 60(C).
    • Handle: RePEc:eee:finlet:v:60:y:2024:i:c:s1544612323012795
    DOI: 10.1016/j.frl.2023.104907
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    Keywords

    Industrial robot adoption; Firm value; Agency cost; Effective tax rate; China;
    All these keywords.

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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