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Allocation of decision‐making power and labour income share in listed companies: Evidence from China

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  • Xiang Yan
  • Jenny Jing Wang
  • Ren Fang Zhang

Abstract

This paper utilises the perspective of listed companies to explore the influence of decision‐making power allocation on labour income share and analyses the possible mechanisms. Utilising 16,650 firm‐year observations from both the Shenzhen and Shanghai stock exchanges between 2008 and 2021, the results show that decentralised decision‐making power can significantly improve the labour income share of enterprises. This result is more obvious in enterprises with non‐state‐owned property rights and low total factor productivity. Furthermore, decentralising enterprise decision‐making power reduces rent dissipation within the company, improves enterprise investment enthusiasm, increases investment in research and development, and promotes upgrading the labour force.

Suggested Citation

  • Xiang Yan & Jenny Jing Wang & Ren Fang Zhang, 2024. "Allocation of decision‐making power and labour income share in listed companies: Evidence from China," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 64(2), pages 1665-1692, June.
    • Handle: RePEc:bla:acctfi:v:64:y:2024:i:2:p:1665-1692
    DOI: 10.1111/acfi.13195
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    References listed on IDEAS

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    3. Guiming Liao & Zheli Hu & Zhichen Yang & Qianlin Yin & Jiahui Chen, 2025. "The Perception of Policy Uncertainty and the Labor Income Share of Firms: Empirical Research Based on Double Machine Learning," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 46(2), pages 999-1011, March.
    4. Wang, Liang & Hu, Jun & Yao, Daifei & Skibniewski, Miroslaw J., 2025. "Indelible imprint: CEOs’ poverty experience and corporate labor income share," Journal of Business Research, Elsevier, vol. 199(C).

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