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Labor contract law, labor income share, and corporate risk-taking

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  • Li, Gang
  • Ma, Yan

Abstract

This study examines the relationship between the Labor Contract Law, labor income share, and corporate risk-taking by utilizing A-share listed companies (2004–2018) as the research sample. The analysis demonstrates that the enactment of the Labor Contract Law enhances corporate risk-taking capabilities, with this effect being amplified by increases in labor income share. Furthermore, the positive effects are more pronounced in firms with lower competitive intensity, non-state-owned enterprises, and during corporate growth or decline phases.

Suggested Citation

  • Li, Gang & Ma, Yan, 2025. "Labor contract law, labor income share, and corporate risk-taking," Finance Research Letters, Elsevier, vol. 85(PC).
    • Handle: RePEc:eee:finlet:v:85:y:2025:i:pc:s1544612325012784
    DOI: 10.1016/j.frl.2025.108020
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • K31 - Law and Economics - - Other Substantive Areas of Law - - - Labor Law

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