Financialization, labor income share, and intra-firm pay gap

Empirical analysis using data from China's A-share listed companies between 2008 and 2022 shows that corporate financialization positively affects top managers' labor income share and increases the internal pay gap. The higher the financing constraint, the stronger the positive effect of corporate financialization. The positive impact of financialization on labor income share was higher in backward than in developed regions. Enterprise financialization in labor-intensive industries increases labor income share, while capital- and technology-intensive industry performances are inhibited.