New Labor Law, Internal Income Distribution And Performance Of Enterprises

The Institutional environment’s impact on the economic has always been the hot issue studied and discussed by scholars. This passage lasts the study of this issue, and take the new labor law which is implemented on Jan1st,2008as the point of penetration to study the related labor legal system’s impact on our country’s microeconomics.On the basis of summarizing the laws and regulations which protect labors’rights and interests in the new labor law, this passage mainly discusses the new labor law’s impact on the enterprises’labor costs and the enterprises’internal income distribution, and analyses the impact of the labor cost’s increase on the input and output of enterprises. In the section of the Literature Review and Theoretical Analysis, applying the traditional principal-agent theory on the relationship between the ordinary employees and the shareholders and combining with the stakeholder theory, this passage expounds that labors could adjust the principal-agent costs all by themself and they are also participants of corporate governance, to illustrate that the impact of the increase of labors’income proportion on enterprises does not only depend on the simple relationship that rising costs leads to descending profitability as the labor economics theory said, we should analyze the impact of the increase of labors’ income on the enterprises comprehensively combining with the theory of corporate governance.Through relevant empirical test, this passage finds out that the implementation of the new labor law has played a significant regulatory role on the internal income distribution of enterprises. After the implementation of the new labor law, the enterprises’internal income distribution inclined more to the labors, which illustrates that the new labor law has achieved the purpose of the legislation, adjusting the social income distribution; The internal labors’ income proportion of the enterprises has a negative relationship with the enterprise performance, which illustrates that even though both the labor economic theory and the corporate governance theory could analyze the relationship between the internal labors’income proportion of the enterprises and the enterprise performance from different points of view, but after our empirical test, the former theory’s analysis is more convincing to the empirical results; We also find that the new labor law does not have significant effect on the enterprise performance, which illustrates, not as many jurists predicted that the implementation of the new labor law would drag down the enterprise performance through improving the labor costs, that the implementation of the new labor law has not ignored the efficiency of the economical society on the basis adjusting the fair distribution of the society income.