| In China’s listed companies,the common phenomenon is that executives always hold positions in their major shareholder’s company at the same time,that is "Vertical Interlocks of Executives".Many previous studies have shown that the vertical interlocks of executives will influence the investment decision behavior of enterprises.Labor force is an indispensable element of production and operation in enterprise,its investment efficiency is related to the operation and development of enterprises.Therefore,it’s an important topic worth to explore that what is the impact of vertical interlocks of executives and how to influence the labor investment efficiency of enterprises.This paper takes the data of China A-share non-financial listed companies from 2005 to 2019 as a sample,explores the impact of executives’ vertical interlocks on labor investment efficiency and its inner mechanism and economic consequences.The research found:(1)When there is happen vertical interlocks of executives in listed companies,the labor investment shortage of enterprises’ level is significantly alleviated.(2)The mechanism test and causality tests showed that,the vertical interlocks of executives can play an effective role in supervision as major shareholders.Also it alleviates the asymmetric information and the problem of agency between large shareholders and listed companies,relieve the shortage of labor investment of enterprises.(3)The results of Heterogeneity analysis show that,when distinguish the job of executives’ vertical interlocks,chairman’s vertical interlocks have stronger effect on labor investment shortage of enterprises.When distinguish the enterprise property,vertical interlocks of executives have stronger effect on labor investment shortage in state-owned enterprises and profitable enterprises.When distinguish the character of the industry,vertical interlocks of executives have stronger effect on labor investment shortage in Non-labor intensive enterprises.Further research showed that,the alleviating of the shortage of labor investment by the executives’ vertical interlocks improves the employment level of labor and the total factor productivity of enterprises.This paper has expanded and enriched the relevant research on the economic consequences of executives’ vertical interlocks and the influencing factors of enterprise labor investment efficiency.It provides empirical evidence for the influence mechanism of enterprise internal governance on enterprise labor investment in theory and practice. |
