How internet judicial construction affects corporate labor employment: Evidence from AI attention in the digital economy

As digitalization and financialization deepen worldwide, understanding how institutional reforms shape firm human capital allocation through technological and financial channels has become a central issue in corporate finance and development research. This study exploits China’s Internet judicial reform as a quasinatural experiment to examine its impact on labor structure deepening. Results show that this reform significantly increases the share of high-skilled labor for firms, reflecting a shift toward more technology-intensive employment. Mechanism analysis suggests that this effect operates through heightened attention to artificial intelligence by both local governments and firms, which facilitates skill-oriented transformation. Moderation tests further reveal that supply chain financialization amplifies the reform’s impact, whereas excessive corporate financialization weakens it, highlighting the dual role of financial structures in resource allocation. Framed around institutional digital reform, technological cognition, financial orientation, and human capital deployment, this paper contributes to the emerging literature on digital governance and corporate restructuring. Overall, the findings provide both conceptual and empirical support for promoting high-quality development through better financial alignment and the advancement of digital legal infrastructure.