Shareholder bargaining power and labor income share: Evidence from a quasi-natural experiment in China

Guannan Liu; Anqi Wang; Kedi Wang; Qiuyun Zhao

doi:10.1016/j.frl.2023.104829

Shareholder bargaining power and labor income share: Evidence from a quasi-natural experiment in China

Guannan Liu, Anqi Wang, Kedi Wang^*, Qiuyun Zhao

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

5 Citations (Scopus)

Abstract

Drawing upon the deregulation of initial public offerings (IPOs) in China, our study reveals a substantial and negative correlation between shareholder bargaining power and the labor income share. This association is particularly pronounced in companies with a higher proportion of institutional investor holdings, within more competitive industries, and those grappling with more severe financing constraints. For scholars exploring the distributive impact of capital market regulatory policies, we emphasize a cautionary note: shareholder capitalism could expedite the erosion of the labor share, potentially exacerbating inequality.

Original language	English
Article number	104829
Journal	Finance Research Letters
Volume	59
DOIs	https://doi.org/10.1016/j.frl.2023.104829
Publication status	Published - Jan 2024

Keywords

Labor income share
Registration-based IPO system
Shareholder bargaining power

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10.1016/j.frl.2023.104829

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Liu, G., Wang, A., Wang, K., & Zhao, Q. (2024). Shareholder bargaining power and labor income share: Evidence from a quasi-natural experiment in China. Finance Research Letters, 59, Article 104829. https://doi.org/10.1016/j.frl.2023.104829

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Shareholder bargaining power and labor income share: Evidence from a quasi-natural experiment in China

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Keywords

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