The Effect of Corporate Venture Capital on Labor Income Share: Evidence from China
This study examines the impact of corporate venture capital (CVC) on the labor income share of science and innovation enterprises, focusing on data from China’s Science and Technology Innovation Board (STIB) and Growth Enterprise Market (GEM) between 2010 and 2022. Empirical results reveal a signifi...
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MDPI AG
2025-06-01
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| Series: | International Journal of Financial Studies |
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| Online Access: | https://www.mdpi.com/2227-7072/13/2/100 |
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| author | Lanlan Sun Lu Zhang Shaolei Qu |
| author_facet | Lanlan Sun Lu Zhang Shaolei Qu |
| author_sort | Lanlan Sun |
| collection | DOAJ |
| description | This study examines the impact of corporate venture capital (CVC) on the labor income share of science and innovation enterprises, focusing on data from China’s Science and Technology Innovation Board (STIB) and Growth Enterprise Market (GEM) between 2010 and 2022. Empirical results reveal a significant inverted U-shaped relationship between CVC shareholding and the labor income share of invested firms. CVC increases the labor income share by enhancing corporate governance, encouraging digital transformation, and improving human capital quality, but this effect diminishes when CVC shareholding exceeds a certain threshold. The moderating role of media attention and the heterogeneity of this relationship across regions and financial conditions are further explored. Additionally, the study identifies a positive U-shaped connection between CVC shareholding and the corporate pay gap, highlighting CVC’s complex role in influencing income inequality within firms. This research contributes to the literature by unveiling the nonlinear effects of CVC on income distribution, offering new insights into its dual role in promoting innovation and equity. Practically, it provides actionable recommendations for firms to optimize CVC ownership and for policymakers to design targeted interventions that address regional and financial disparities. By bridging the gap between CVC investment strategies and labor income fairness, this study lays the foundation for a balanced approach to sustainable economic development. |
| format | Article |
| id | doaj-art-643864bc39bc4785b44fda30cc352ff3 |
| institution | Kabale University |
| issn | 2227-7072 |
| language | English |
| publishDate | 2025-06-01 |
| publisher | MDPI AG |
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| series | International Journal of Financial Studies |
| spelling | doaj-art-643864bc39bc4785b44fda30cc352ff32025-08-20T03:27:29ZengMDPI AGInternational Journal of Financial Studies2227-70722025-06-0113210010.3390/ijfs13020100The Effect of Corporate Venture Capital on Labor Income Share: Evidence from ChinaLanlan Sun0Lu Zhang1Shaolei Qu2School of Economics and Management, Qingdao University of Science and Technology, Qingdao 266061, ChinaSchool of Economics and Management, Qingdao University of Science and Technology, Qingdao 266061, ChinaSchool of Economics and Management, Qingdao University of Science and Technology, Qingdao 266061, ChinaThis study examines the impact of corporate venture capital (CVC) on the labor income share of science and innovation enterprises, focusing on data from China’s Science and Technology Innovation Board (STIB) and Growth Enterprise Market (GEM) between 2010 and 2022. Empirical results reveal a significant inverted U-shaped relationship between CVC shareholding and the labor income share of invested firms. CVC increases the labor income share by enhancing corporate governance, encouraging digital transformation, and improving human capital quality, but this effect diminishes when CVC shareholding exceeds a certain threshold. The moderating role of media attention and the heterogeneity of this relationship across regions and financial conditions are further explored. Additionally, the study identifies a positive U-shaped connection between CVC shareholding and the corporate pay gap, highlighting CVC’s complex role in influencing income inequality within firms. This research contributes to the literature by unveiling the nonlinear effects of CVC on income distribution, offering new insights into its dual role in promoting innovation and equity. Practically, it provides actionable recommendations for firms to optimize CVC ownership and for policymakers to design targeted interventions that address regional and financial disparities. By bridging the gap between CVC investment strategies and labor income fairness, this study lays the foundation for a balanced approach to sustainable economic development.https://www.mdpi.com/2227-7072/13/2/100corporate venture capital (CVC)labor income shareinnovationsdigitalizationcorporate governance |
| spellingShingle | Lanlan Sun Lu Zhang Shaolei Qu The Effect of Corporate Venture Capital on Labor Income Share: Evidence from China International Journal of Financial Studies corporate venture capital (CVC) labor income share innovations digitalization corporate governance |
| title | The Effect of Corporate Venture Capital on Labor Income Share: Evidence from China |
| title_full | The Effect of Corporate Venture Capital on Labor Income Share: Evidence from China |
| title_fullStr | The Effect of Corporate Venture Capital on Labor Income Share: Evidence from China |
| title_full_unstemmed | The Effect of Corporate Venture Capital on Labor Income Share: Evidence from China |
| title_short | The Effect of Corporate Venture Capital on Labor Income Share: Evidence from China |
| title_sort | effect of corporate venture capital on labor income share evidence from china |
| topic | corporate venture capital (CVC) labor income share innovations digitalization corporate governance |
| url | https://www.mdpi.com/2227-7072/13/2/100 |
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