A Study Of The Impact Of Corporate Financialization On The Share Of Intra-firm Labor Income Distribution

At this juncture of our social and economic advancement,the issue of income distribution,particularly the vast disparity between labor and capital income,is a pressing matter that must be addressed.at the enterprise level is based on the principle of efficiency,which means that the pattern of income distribution within the enterprise is not only expressed in the distribution of income between labor and capital production factors,but also includes different types of labor,and its role in the operation of the enterprise also reflects the influence of factors such as the dominance of income distribution within the enterprise,corporate governance,and this paper investigates the management’s decision-making behavior within the company.Direct relationship between corporate financialization and intra-firm labor income shares in the context of the development of corporate financialization in order to reveal the role of corporate financialization investment behavior in influencing intra-firm income distribution.including relative labor-capital income shares and executive-average worker labor income shares.This study facilitates the understanding of the role of corporate financialization on labor income distribution and further explores the impact from corporate institutions and business behaviors on corporate income distribution patterns.This paper empirically investigates the effect of corporate financialization on the intra-firm income distribution,particularly labor income share,and the effects of various types of labor income share,through panel data of Chinese listed enterprises from 2007 to 2021,based on theories of labor economics,corporate finance,management science,and corporate financialization theory.The empirical analysis unveils the moderating effects of executive tenure and the diversity of corporate property rights.The findings of the study demonstrate that:(1)corporate financialization has a considerable impact on the portion of capital and labor factor income within the company,with capital factor income and executive income both significantly increasing,and executives are granted more "bonuses" than the average worker through corporate financialization.(2)The negative influence of corporate property rights on the correlation between financialization and the proportion of capital and executive income is substantial:non-state enterprises are more strongly impacted by corporate financialization than state-owned ones.(3)The moderating effect of executive tenure on corporate financialization on the proportion of executive income,as well as its positive augmentation on the portion of capital factors’ income and the portion of executive income,diminishes with an increase in executive tenure.The results indicate that,under the principle of efficiency,corporate financialization will have a considerable impact on the internal income distribution of businesses,and to a certain degree,widen the disparity between capital and labor income,with a direct effect on the income distribution of various labor types;the heterogeneity test of the character of enterprise property rights is also taken into consideration.The moderating effect of executive tenure explore how the nature of enterprises and corporate governance affect the role of corporate financialization The results enrich the relevant studies on the income distribution within enterprises and are enlightening to promote income distribution equity.