Research On The Influence And Mechanism Of Venture Capital On Firm Labor Investment Efficiency

Improving the efficiency of human capital allocation is the key for firms to accelerate the upgrading of industrial structure and improve the quality of development.Due to the existence of information asymmetry and principal-agent problems,the labor investment of firms may deviate from the optimal level,resulting in low efficiency,which will have a negative impact on the future business performance of firms and destroy the wealth of shareholders.Therefore,it has become an important theoretical and practical issue to study what factors promote or hinder the efficiency of labor investment.In order to achieve the goal of "value-added",venture capital will help the company standardize its operation and management,continuously supervise and restrain the company and managers,and guide firms to optimize the human capital structure.Therefore,this paper selects A-share listed companies from 2010 to 2021 as observation samples to study the impact and mechanism of venture capital on labor investment efficiency of firms.The findings are as follows: First,venture capital can significantly improve the efficiency of labor investment,which is embodied in restraining excessive labor investment.After a series of robustness tests,this discovery still exists.Secondly,the mechanism research found that venture capital mainly improves the efficiency of firm labor investment by reducing information asymmetry,alleviating agency conflict and improving management ability.Third,in non-state-owned firms with high labor adjustment costs,venture capital has a more significant positive impact on labor investment efficiency.Fourthly,the greater the number of directors appointed by venture capital leaders,the greater the shareholding ratio and the higher the reputation,the more significant the positive impact on the labor investment efficiency of firms.Fifth,the positive impact of venture capital on the efficiency of firm labor investment can significantly improve the future performance of firms.This paper not only supplements the literature on the governance effect of venture capital,but also increases the literature on the influencing factors of labor investment efficiency.At the same time,it also reveals the mechanism of venture capital affecting the efficiency of firm labor investment,which is conducive to a deeper understanding of the relationship between venture capital and firm labor investment efficiency.In addition,the intervention of venture capital can help and supervise the management to make effective labor investment decisions,which has certain reference significance for firms to improve the efficiency of labor investment and for the regulatory authorities to guide and standardize the venture capital industry.