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Minimum wage and corporate investment efficiency: Evidence from China

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  • Zhu, Zhengjie
  • Tian, Jia

Abstract

This article uses China's A-share listed companies from 2002 to 2020 as a sample, to study the relationship between MW increases and company investment efficiency. The results show that the minimum wage has a significant promotion effect on the investment efficiency of enterprises. The reasons for this situation are: on the one hand, an increase in the minimum wage will increase operating expenses and labor costs, and companies will proactively adjust their production and investment strategies. On the other hand, the increase in per capita capital stock will promote the creativity of enterprises, bring about technological progress and productivity improvement.

Suggested Citation

  • Zhu, Zhengjie & Tian, Jia, 2024. "Minimum wage and corporate investment efficiency: Evidence from China," Finance Research Letters, Elsevier, vol. 59(C).
    • Handle: RePEc:eee:finlet:v:59:y:2024:i:c:s1544612323011546
    DOI: 10.1016/j.frl.2023.104782
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    References listed on IDEAS

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    Cited by:

    1. Birca Alic, 2024. "Minimum Wage - A Determininant Of Ensuring Sustainable Employment In The Republic Of Moldova," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 4, pages 132-141, August.

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