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Digital transformation, equity pledge and labor income share

Author

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  • Jiang, Yiyun
  • Wang, Xiufeng
  • Sam, Toong Hai
  • Vasudevan, Asokan

Abstract

This paper examines the impact of digital transformation on firms' labour income share using data from China's A-share listed companies from 2012 to 2022. The findings show that digital transformation generally increases firms' labour income share, mainly due to the increase in the share of graduate students and R&D personnel. However, equity pledges may undermine this positive impact.

Suggested Citation

  • Jiang, Yiyun & Wang, Xiufeng & Sam, Toong Hai & Vasudevan, Asokan, 2024. "Digital transformation, equity pledge and labor income share," Finance Research Letters, Elsevier, vol. 64(C).
    • Handle: RePEc:eee:finlet:v:64:y:2024:i:c:s1544612324004811
    DOI: 10.1016/j.frl.2024.105451
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    References listed on IDEAS

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    Cited by:

    1. Li, Gang & Ma, Yan, 2025. "Labor contract law, labor income share, and corporate risk-taking," Finance Research Letters, Elsevier, vol. 85(PC).
    2. Liu, Tao & Zhuang, Xintian & Li, Mingcao, 2025. "How supplier concentration influences labor income share: Evidence from China," Finance Research Letters, Elsevier, vol. 73(C).
    3. Li, Xuezeng & Zheng, Haoyuan & Jiang, Yuanyuan, 2025. "An efficient allocation or financial distortion: Can employee stock ownership promote common prosperity within enterprises?," International Review of Economics & Finance, Elsevier, vol. 98(C).
    4. Sun, Jiaqi & Li, Ping & Wang, Yunqiao, 2025. "Can the pilot policy of returnee entrepreneurship promote labor income?," Finance Research Letters, Elsevier, vol. 85(PC).
    5. Liu, Tingyu & Huang, Peng & Wang, Qiaoru, 2025. "The impact of digital innovation on labor share: Evidence from Chinese firms," International Review of Economics & Finance, Elsevier, vol. 99(C).
    6. Ding, Yijiu & Li, Bo & Ma, Shenglin & Yu, Chunrong & Zhao, Xiaoyi, 2025. "Digital transformation and wage distortion in R&D and innovation activities - Causal inference based on double machine learning," International Review of Financial Analysis, Elsevier, vol. 106(C).
    7. Ding, Yijiu & Li, Bo & Lan, Dahai & Yu, Chunrong & Zhang, Xueqing, 2025. "Research on wage distortion in R&D and innovation activities —— Evidence from China's listed manufacturing enterprises," International Review of Economics & Finance, Elsevier, vol. 102(C).

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