The rise in the labor income share is crucial to ensuring that individuals partake in the benefits of economic and social progress.In contrast to the widespread decline in labor income share globally,a phe-nomenon of"rising against the trend"is observed in post-financial crisis in China.Utilizing a sample of A-share listed companies in China spanning from 2007 to 2021,this paper constructed a theoretical model to explore the impact of corporate cash holding on the share of labor income from the micro perspective of cor-porate cash holding decisions,and analyzed the impact of financing constraints and technological innovation on the above relationships.It is found that the optimal cash holding level of enterprises has a negative impact on the share of labor income;when financing constraints are eased or technological innovation accelerates,companies'cash distribution for labor incentives will increase,and the share of labor income will consequent-ly rise,thus intensifying the negative correlation between them.The analysis of industry heterogeneity indi-cates that in labor-intensive industries,higher labor costs reduce incentives for cash allocation to labor fac-tors.Financing constraints play a significant role in lower incentives in capital-intensive industries,and in-adequate labor-biased technological innovation contributes to lower incentives in technology-intensive sectors.The conclusions offer fresh empirical insights into comprehending the impact of cash holding decisions and the"mystery of the contrarian rise"of labor income share in China.Additionally,the findings prompt valua-ble considerations for standardizing the order of income distribution.
corporate cash holdingslabor income sharefinancing constraintstechnological progressmoderating effect
NETL
NSTL
万方数据
