TY - JOUR
T1 - Shareholder bargaining power and labor income share
T2 - Evidence from a quasi-natural experiment in China
AU - Liu, Guannan
AU - Wang, Anqi
AU - Wang, Kedi
AU - Zhao, Qiuyun
N1 - Publisher Copyright:
© 2023
PY - 2024/1
Y1 - 2024/1
N2 - 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.
AB - 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.
KW - Labor income share
KW - Registration-based IPO system
KW - Shareholder bargaining power
UR - http://www.scopus.com/inward/record.url?scp=85180773466&partnerID=8YFLogxK
U2 - 10.1016/j.frl.2023.104829
DO - 10.1016/j.frl.2023.104829
M3 - Article
AN - SCOPUS:85180773466
SN - 1544-6123
VL - 59
JO - Finance Research Letters
JF - Finance Research Letters
M1 - 104829
ER -