IDEAS home Printed from https://ideas.repec.org/a/eee/finlet/v60y2024ics1544612323012606.html
   My bibliography  Save this article

The impact of corporate digital transformation on labor employment

Author

Listed:
  • Han, Yue
  • Yang, Jie
  • Ying, Limeng
  • Niu, Yanfang

Abstract

Our research indicates that digital transformation within enterprises can significantly expand labor employment. This expansion is compatible with the cost reductions and efficiency improvements brought about by digital transformation, enabling enterprises to enlarge their production and service scales, meet growing market demands, and create new business opportunities. Heterogeneity testing results demonstrate that this promotional effect is more pronounced in state-owned enterprises and non-manufacturing industries. Overall, digital transformation is not only a pathway to enhanced competitiveness but also a crucial means of fostering job growth and improving the employment structure in society.

Suggested Citation

  • Han, Yue & Yang, Jie & Ying, Limeng & Niu, Yanfang, 2024. "The impact of corporate digital transformation on labor employment," Finance Research Letters, Elsevier, vol. 60(C).
    • Handle: RePEc:eee:finlet:v:60:y:2024:i:c:s1544612323012606
    DOI: 10.1016/j.frl.2023.104888
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1544612323012606
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.frl.2023.104888?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Lu, Hui Ting & Li, Xue & Yuen, Kum Fai, 2023. "Digital transformation as an enabler of sustainability innovation and performance – Information processing and innovation ambidexterity perspectives," Technological Forecasting and Social Change, Elsevier, vol. 196(C).
    2. Afonso, Óscar, 2016. "Effects of labour-market institutions on employment, wages, R&D intensity and growth in 27 OECD countries: From theory to practice," Economic Modelling, Elsevier, vol. 53(C), pages 48-62.
    3. Devereux, Michael P. & Griffith, Rachel, 1998. "Taxes and the location of production: evidence from a panel of US multinationals," Journal of Public Economics, Elsevier, vol. 68(3), pages 335-367, June.
    4. Meng, Lin & Lv, Wangyong & Yuan, George Xianzhi & Wang, Huiqi, 2023. "The dynamic risk profiles and management strategies in supply chain coopetition under altruistic preference," International Review of Financial Analysis, Elsevier, vol. 90(C).
    5. Liu, Shasha & Zhao, Huixian & Kong, Gaowen, 2023. "Enterprise digital transformation, breadth of ownership and stock price volatility," International Review of Financial Analysis, Elsevier, vol. 89(C).
    6. Devos, Erik & Rahman, Shofiqur, 2023. "Does labor unemployment insurance affect corporate tax aggressiveness?," International Review of Financial Analysis, Elsevier, vol. 90(C).
    7. Tiantian, Guo & Hailin, Chen & Zhou, Xiao & Ai, Shanru & Siyao, Wang, 2023. "Does corporate digital transformation affect the level of corporate tax avoidance? Empirical evidence from Chinese listed tourism companies," Finance Research Letters, Elsevier, vol. 57(C).
    8. Imen Ghadhab & Hamza Nizar & Ramzi Benkraiem & Faten Lakhal, 2023. "Cross-listing dynamics and labor investment efficiency: International evidence," Post-Print hal-04146889, HAL.
    9. Zhang, Yimeng & Ma, Xinyu & Pang, Jianing & Xing, Hailong & Wang, Jian, 2023. "The impact of digital transformation of manufacturing on corporate performance — The mediating effect of business model innovation and the moderating effect of innovation capability," Research in International Business and Finance, Elsevier, vol. 64(C).
    10. Zhuo, Chengfeng & Chen, Jin, 2023. "Can digital transformation overcome the enterprise innovation dilemma: Effect, mechanism and effective boundary," Technological Forecasting and Social Change, Elsevier, vol. 190(C).
    11. Dou, Bin & Guo, SongLin & Chang, XiaoChen & Wang, Yong, 2023. "Corporate digital transformation and labor structure upgrading," International Review of Financial Analysis, Elsevier, vol. 90(C).
    12. Ghadhab, Imen & Nizar, Hamza & Benkraiem, Ramzi & Lakhal, Faten, 2023. "Cross-listing dynamics and labor investment efficiency: International evidence," International Review of Financial Analysis, Elsevier, vol. 88(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    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. Zheng, Deyuan & Song, Hang & Zhao, Chunguang & Liu, Yujiao & Zhao, Wenhao, 2024. "Is it possible for semiconductor companies to reduce carbon emissions through digital transformation? Evidence from China," International Journal of Production Economics, Elsevier, vol. 272(C).
    3. Zhao, Lihong & Yuan, Huiai, 2024. "Digital transformation and the herd effect of corporate green investment," Finance Research Letters, Elsevier, vol. 63(C).
    4. Yuan, Sai & Zhou, Ran & Li, Mengna & Lv, Chengchao, 2023. "Investigating the influence of digital technology application on employee compensation," Technological Forecasting and Social Change, Elsevier, vol. 195(C).
    5. Zhang, Chenrui & Wang, Yatong, 2024. "Is enterprise digital transformation beneficial to shareholders? Insights from the cost of equity capital," International Review of Financial Analysis, Elsevier, vol. 92(C).
    6. Guo, Borui & Huang, Xiaoxia, 2024. "Digital transformation tone signal and the cost of equity: Evidence from Chinese listed companies," Finance Research Letters, Elsevier, vol. 59(C).
    7. Jia, Shanghui & Guo, Nannan & Liu, Yingke, 2023. "Electricity shortage and corporate digital transformation: Evidence from China's listed firms," Finance Research Letters, Elsevier, vol. 57(C).
    8. Jean-Louis Mucchielli & Thierry Mayer, 1999. "La localisation à l'étranger des entreprises multinationales," Post-Print hal-01016877, HAL.
    9. Christian Keuschnigg, 2008. "Corporate Taxation and the Welfare State," Working Papers 0813, Oxford University Centre for Business Taxation.
    10. Ralf Ewert & Rainer Niemann, 2012. "Limited Liability, Asymmetric Taxation, and Risk Taking - Why Partial Tax Neutralities Can Be Harmful," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 68(1), pages 83-120, March.
    11. Grégoire Rota-Graziosi & Fayçal Sawadogo, 2020. "The tax burden on mobile network operators in Africa," Working Papers hal-03109370, HAL.
    12. Riccardo Crescenzi & Carlo Pietrobelli & Roberta Rabellotti, 2012. "Innovation Drivers, Value Chains and the Geography of Multinational Firms in European Regions," LEQS – LSE 'Europe in Question' Discussion Paper Series 53, European Institute, LSE.
    13. Mutti, John & Grubert, Harry, 2004. "Empirical asymmetries in foreign direct investment and taxation," Journal of International Economics, Elsevier, vol. 62(2), pages 337-358, March.
    14. Jan I. Haaland & Ian Wooton & Giulia Faggio, 2002. "Multinational Firms: Easy Come, Easy Go?," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 59(1), pages 3-26, February.
    15. Da Rin, Marco & Di Giacomo, Marina & Sembenelli, Alessandro, 2011. "Entrepreneurship, firm entry, and the taxation of corporate income: Evidence from Europe," Journal of Public Economics, Elsevier, vol. 95(9), pages 1048-1066.
    16. De Simone, Lisa & Klassen, Kenneth J. & Seidman, Jeri K., 2022. "The effect of income-shifting aggressiveness on corporate investment," Journal of Accounting and Economics, Elsevier, vol. 74(1).
    17. Regina Ortmann & Erich Pummerer, 2023. "Distortional effects of separate accounting and formula apportionment on factor allocation," Journal of Business Economics, Springer, vol. 93(8), pages 1277-1307, October.
    18. Jean-Louis Mucchielli & Florence Puech, 2003. "Internationalisation et localisation des firmes multinationales : l'exemple des entreprises françaises en Europe," Économie et Statistique, Programme National Persée, vol. 363(1), pages 129-144.
    19. Richard Kneller & Danny McGowan, 2011. "Tax Policy and Firm Entry and Exit Dynamics: Evidence from OECD Countries," Discussion Papers 11/08, University of Nottingham, School of Economics.
    20. Michael Overesch, 2005. "The Effective Tax Burden of Companies in Europe," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 3(04), pages 56-63, January.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:finlet:v:60:y:2024:i:c:s1544612323012606. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/frl .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.