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Digital transformation and labour investment efficiency: Heterogeneity across the enterprise life cycle

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Listed:
  • Liu, Shu
  • Wu, Yuting
  • Yin, Xiaobo
  • Wu, Bin

Abstract

This study delves into the influence of digital transformation on labour investment efficiency and its varied effects across different business phases. Utilizing panel regression and the instrumental variable model, the research analyses data from China's A-share listed companies spanning 2011–2021. Findings reveal that digital transformation considerably enhances labour investment efficiency, mitigating both overinvestment and underinvestment issues. Heterogeneity analysis further indicates that digital transformation fine-tunes resource distribution, especially aiding businesses in their growth and maturity phases. Contrarily, firms in a declining phase show no discernible impact from digital transformation.

Suggested Citation

  • Liu, Shu & Wu, Yuting & Yin, Xiaobo & Wu, Bin, 2023. "Digital transformation and labour investment efficiency: Heterogeneity across the enterprise life cycle," Finance Research Letters, Elsevier, vol. 58(PC).
    • Handle: RePEc:eee:finlet:v:58:y:2023:i:pc:s1544612323009091
    DOI: 10.1016/j.frl.2023.104537
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    References listed on IDEAS

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    1. Zhang, Cheng & Fang, Jiming & Ge, Shilong & Sun, Guanglin, 2024. "Research on the impact of enterprise digital transformation on carbon emissions in the manufacturing industry," International Review of Economics & Finance, Elsevier, vol. 92(C), pages 211-227.
    2. Liu, Biao & Li, Yanfeng & Liu, Jipeng & Hou, Yufei, 2024. "Does urban innovation policy accelerate the digital transformation of enterprises? Evidence based on the innovative City pilot policy," China Economic Review, Elsevier, vol. 85(C).
    3. Yan, Jiajia & Zhang, Chenyan, 2024. "Financial institution agglomeration and corporate labor allocation efficiency—Based on the context of government debt expansion," Finance Research Letters, Elsevier, vol. 63(C).

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