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Financial institution agglomeration and corporate labor allocation efficiency—Based on the context of government debt expansion

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  • Yan, Jiajia
  • Zhang, Chenyan

Abstract

This study investigates how financial institution agglomeration affects labor allocation efficiency in non-financial firms listed on China's A-share markets, within a context of expanded government debt and relaxed local debt financing controls. Results show that such agglomeration significantly improves labor efficiency, mainly by easing financing constraints. The positive impact is stronger in non-state-owned and manufacturing firms.

Suggested Citation

  • 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).
    • Handle: RePEc:eee:finlet:v:63:y:2024:i:c:s1544612324003118
    DOI: 10.1016/j.frl.2024.105281
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