The effects of employee pay on firm value
研究发现普通员工薪酬越高，企业价值越大，劳动力稳定性是中间机制；该效应在财务强、研发投入高的企业中更明显，支持利益相关者理论，反对劳动力杠杆理论。
This paper empirically tests the relationship between rank-and-file workers' compensation and firm value. Using data of median employee pay, which serves as a crucial monetary gauge of how companies treat their employees, we find a statistically and economically positive effect of employee treatment on firm value. We show that workforce stability serves as the underlying channel through which this positive relationship is reinforced. This relationship is more pronounced in firms with strong financial positions and high R&D investment. To mitigate endogeneity concerns, we perform propensity score matching and two-stage least squares tests. Our findings align with stakeholder theory, but conflict with labor leverage theory, which contends that employee compensation has a negative effect on firm value.