Research On The Impact Of Minimum Wage Standard On Enterprise Financial Asset Allocation

As a key measure of China’s labor protection policy,the minimum wage system has been gradually improving.Its economic impact is not only reflected in the macro aspect,but also has an important impact on the production and operation decisionmaking of micro enterprises.As an important decision-making of enterprises,financial asset allocation is rarely explored.Due to the different motives of enterprises to hold financial assets,the rise of the minimum wage will also have different effects on the allocation of financial assets.On the one hand,when the enterprise allocates financial assets for the motivation of "reservoir",The rise of the minimum wage may "force" enterprises to increase capital investment and better develop real industries,so as to reduce the allocation of financial assets;On the other hand,when enterprises allocate financial assets for the purpose of "investment substitution",enterprises may be "forced" by the pressure of profits to improve the allocation of financial assets.Therefore,this paper puts forward alternative hypotheses.In order to further verify the hypothesis results,an empirical study is carried out.This paper selects the listed companies in A-share non-financial industry from2009 to 2019 as the research sample,and constructs an empirical model for regression test.The research results show that the financial asset allocation standard will rise by6.5%,which is equivalent to the average increase of the minimum asset allocation standard of enterprises.In further research,firstly,this paper discusses the differences of this impact in different types of enterprises,including different labor intensity and cost transfer ability.The study found that this effect is more significant in laborintensive enterprises and enterprises with weak cost transfer ability.Secondly,it discusses the impact of the rise of the minimum wage on different types of financial assets.The results show that the rise of the minimum wage mainly reduces the allocation of "reservoir" financial assets,and the "investment substitution" financial assets do not increase significantly.In the robustness test,this paper mainly considers the endogenous problem and index sensitivity.After a series of tests,the results are still robust.In the mechanism test,the results show that the rise of the minimum wage not only reduces the operating cash flow of enterprises,but also promotes the increase of capital investment,thus reducing the allocation of financial assets.On the one hand,this study provides decision support for the steady progress of the minimum wage policy from the perspective of enterprise financial asset allocation;On the other hand,it provides a useful reference for the improvement of the minimum wage system and the improvement of the current situation of "disenchantment from reality to emptiness" of the economy.