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Effects of Financial Excess on the Fairness of Labor - Capital Financial Distribution: Evidence from China

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Proceedings of the Fifteenth International Conference on Management Science and Engineering Management (ICMSEM 2021)

Part of the book series: Lecture Notes on Data Engineering and Communications Technologies ((LNDECT,volume 79))

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Abstract

Since 2000, Japanese enterprises have begun commonly holding a large amount of cash while reducing interest-bearing debt. A-share listed companies in China from 2009 to 2018 are examined in this study to find a similar phenomenon among Chinese enterprises, which can be quantified as “financial excess”. The relationship among financial excess and labor-capital financial distribution and innovation output in Chinese listed companies is investigated accordingly. There appears to be a significant “inverted U-shaped” relationship between financial excess and the labor-capital financial distribution. The moderating effect of innovation activities gives financial excess a stronger influence on the fairness of the labor-capital financial distribution, making the curve shape steeper. Financial excess and fair financial distribution indicators are combined in this work for the first time, which marks a significant contribution to the literature. This work also may have practical significance for enterprises seeking to improve their fund utilization efficiency and to ensure sustainable development.

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Acknowledgements

I would like to express my sincere and deep gratitude to my supervisor, Professor Gan Shengdao, for his inspiration, valuable instructions, and patience. He offered me a great deal of advice, particularly in determining the topic and revising the paper. I am also greatly indebted to the professors who have instructed me throughout my thesis-writing process. Thank you.

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Authors and Affiliations

  1. School of Business, Sichuan University, Chengdu, 610065, People’s Republic of China

    Shengdao Gan & Miao Qin

Authors
  1. Shengdao Gan
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  2. Miao Qin
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Editor information

Editors and Affiliations

  1. Business School, Sichuan University, Chengdu, China

    Jiu** Xu

  2. University of Castilla-La Mancha (UCLM), Ciudad Real, Ciudad Real, Spain

    Fausto Pedro García Márquez

  3. World Academy of Sciences, Trieste, Italy

    Mohamed Hag Ali Hassan

  4. Academy of Sciences of Moldova, Chisinau, Moldova

    Gheorghe Duca

  5. Institute of Systems Control, Azerbaijan National Academy of Sciences, Baku, Azerbaijan

    Asaf Hajiyev

  6. Department of Industrial Engineering, Gazi University, Ankara, Turkey

    Fulya Altiparmak

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Gan, S., Qin, M. (2021). Effects of Financial Excess on the Fairness of Labor - Capital Financial Distribution: Evidence from China. In: Xu, J., García Márquez, F.P., Ali Hassan, M.H., Duca, G., Hajiyev, A., Altiparmak, F. (eds) Proceedings of the Fifteenth International Conference on Management Science and Engineering Management. ICMSEM 2021. Lecture Notes on Data Engineering and Communications Technologies, vol 79. Springer, Cham. https://doi.org/10.1007/978-3-030-79206-0_2

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